pay-for-performance
Pay-for-performance is a compensation strategy where employees receive financial rewards based on their job performance or the results they achieve, rather than just a fixed salary. This approach motivates individuals to work harder and improve their productivity, as their earnings are directly linked to their contributions, such as meeting sales targets or improving customer satisfaction. It’s commonly used in various fields, including sales and healthcare, to drive desired outcomes and align employee goals with organizational objectives. Essentially, it encourages employees to perform well in order to earn bonuses or incentives.
Additional Insights
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Pay-for-Performance is a compensation model where employees are rewarded based on their job performance rather than through a fixed salary. This means that if individuals or teams meet or exceed specific goals or metrics, they receive bonuses or raises as incentives. The idea is to motivate employees to improve their work and productivity, aligning their efforts with the organization’s objectives. It's commonly used in various sectors, including healthcare, sales, and education, to encourage better outcomes and accountability. Ultimately, it aims to create a more dynamic and results-oriented workplace.