Kodak employees are breathing a sigh of relief this week after it was announced that bonuses and merit increases are being reinstated after several years’ hiatus. According to Democrat and Chronicle, the incentives are set to be distributed on April 25 and December 5, totaling a 5.5 percent increase over annual wages for hourly workers from 2012. After a rough period for Kodak employees – which included the suspension of bonuses in 2009, the company filing for Chapter 11 bankruptcy, and pay freezes in 2012 -Kodak workers on every level have cause to celebrate. As hourly workers are being compensated the additional 5.5 percent, top executives will be paid a bonus similar to commissions or merit increases, in which funds will be distributed to individuals based on their performance over the last year. Kodak seems to be placing emphasis on bonuses and employee compensation again not only because they are now in a financial position to reinstate the program, but because of the quantifiable benefits of rewarding workers in this manner. The Harvard Business Review has reported that compensation strategies motivate everyone in the company to excel at their jobs. For executives at Kodak who are operating on a commission-style system, they are encouraged to work as a team and to creatively build an effective and collaborative work environment. For a company like Kodak, which has experienced significant hardship over the last decade, creativity and collaboration are vital. Especially after more than one year without bonuses or incentive compensation, Kodak employees may be more motivated to help the company bring in higher revenues in order to keep business going and maybe even keep bonuses around for next year.