Rewarding Individual Employees Through Variable Pay Programs

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Joyce R


Date added:

December 21, 2013








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5 / 1312


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The best pay system pays the job what it is worth while also paying competitively relative to the labor market. Some organizations prefer to be pay leaders by paying above the market, while some may lag the market because they cannot afford to pay market rates, or they are willing to bear the cost of paying below market...
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Pay is often the highest single operating cost of an organization, which means that paying too can make the organization's products or services too expensive. It's a strategic decision an organization must make, with clear trade-offs. A variable pay program is a pay plan that bases a portion of an employee's pay on some individual and/or organizational measure of performance...
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