Variable Pay: Incentives for Performance

Variable pay is compensation linked to individual, team, and/or organization performance. Traditionally also known as incentives, variable pay plans are attempts to tie additional tangible rewards given to employees for performance beyond normal expectations.

Lets discuss briefly variable pay

 

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Variable pay is actually a performance linked pay. You get a certain fixed rate for the minimum standard hours of quality output and anything above that is your additional effort. This additinal effort decides your variable pay. So it is your extra bit for more work with consistency !