This pay structure ensures that only the top-performing employees survive. Many businesses say it’s a great way to improve employee performance. Implementing a pay-for-performance compensation model in your workplace can increase motivation and productivity amongst employees.
It can help you meet your business goals while also motivating and incentivizing employees to contribute their best work. When the pay is based on whether the target /objectives are achieved by the employee, it is said to be a performance based pay.
This will help in reducing fears of favoritism among employees. This will help in reducing fears of favoritism among employees. Performance-based compensation models are extremely popular, particularly for sales-based roles.
Linking compensation and performance can also help your employees see, in a tangible way, the benefit they bring to your company and its operations.
