Pay-for-performance models

Pay-for-performance models are compensation strategies where employees or service providers are rewarded based on their performance or results rather than on traditional metrics like hours worked or seniority. For example, in healthcare, doctors may receive bonuses for improving patient outcomes or meeting specific health metrics. In sales, employees might earn commissions for achieving sales targets. This model aims to motivate individuals to perform better and align their goals with those of the organization, ultimately fostering a culture of high performance and accountability.