Performance-Related Pay

Performance-Related Pay (PRP) is a compensation system where employees earn additional pay based on their job performance. Instead of receiving a fixed salary, workers may receive bonuses, incentives, or raises tied to their achievements or contributions to the organization’s goals. This system is designed to motivate employees to improve their performance and productivity, aligning their efforts with the company’s success. PRP can vary widely in structure and criteria, often evaluated through appraisals or performance metrics, encouraging a culture of accountability and rewarding high performers.