What is performance-based compensation?
Understand the Problem
The question is asking for an explanation of the concept of performance-based compensation, which refers to a pay structure where an employee's compensation is directly tied to their performance and achievements rather than a fixed salary.
Answer
Performance-based compensation ties financial rewards to performance and achievement of specific goals.
Performance-based compensation is a system where employees are rewarded financially based on their performance and achievement of specific goals, typically through bonuses or incentives beyond their regular salary.
Answer for screen readers
Performance-based compensation is a system where employees are rewarded financially based on their performance and achievement of specific goals, typically through bonuses or incentives beyond their regular salary.
More Information
Performance-based compensation aims to motivate employees to achieve high performance by offering financial incentives. This can be advantageous for both employers and employees, as it can drive productivity and reward excellence.
Sources
- Pros and Cons of Performance-Based Pay - APS Payroll - apspayroll.com
- Performance-Based Compensation: What It Is And How To Approach It - peoplemanagingpeople.com
- Performance-Based Compensation Plan - gbewbenefits.com
