Human Capital Management, Leadership, Total Rewards
Performance Based Pay
What You Need to Know
Performance-based pay systems provide financial compensation based on individual or group performance.
There are several advantages to performance based pay, including alignment of risk with results delivered; focused attention on what is important to the organization; employees contribute to their own success; enhanced communication between supervisor and employee; and it provides a rational way to differentiate employees.
Check out some tips on performance based pay in the infographic below: