Do Performance-Based Bonuses Work? To better understand the impact of performance-based bonuses, we asked 10 professionals from various industries and positions, including CEOs, marketing managers, and community experts. From discussing the negative effects on employees to addressing problems with performance bonuses, these experts provide valuable insights into the effectiveness and potential downsides of this popular compensation strategy. Negative Effects on Employees Powerful Motivators and Retention Effectiveness of Various Bonuses Fairness