Variable Pay Schemes

Variable pay schemes are compensation methods that include financial rewards based on performance, results, or specific goals, rather than a fixed salary. They can take the form of bonuses, commissions, profit sharing, or stock options. These schemes aim to motivate employees to excel and align their efforts with the organization's objectives. For example, a salesperson might earn a commission for each sale made, encouraging them to sell more. This approach distinguishes between base salary and additional earnings linked to individual or company performance, fostering a dynamic and results-oriented work environment.