Originally Posted by tom11011

There are many reasons that benefit the company to structure it this way instead of a raise.

1.) A raise is permanent. If an employee stays long enough the raise will work out higher in the long run.
2.) A raise would have to be given to the entire group.
3.) No union negotiation to give a bonus
4.) A bonus doesnt become part of a companies recurring costs
5.) A bonus doesnt become part of a new hourly rate for basing future new hourly rates from.
6.) A bonus doesnt become part of the equation for benefits that are based on a percentage of salary such as 401k and life insurance.