What is pay-for-performance compensation?
Pay-for-performance is a system where financial incentives or other benefits are given based on how well an employee does their job.
Best-practice compensation programs meet employees’ basic financial needs, are fair and transparent, link directly to performance and reward desired behaviors.
The benefits of pay-for-performance
Much research has been done on the complex relationship between compensation, performance and motivation. Research shows that linking pay to performance is an excellent motivational tool – but not the only tool that can influence performance. Managers need to look beyond financial compensation, and understand what motivates and rewards their employees, and address those specific needs.
Keys to success
Your organization needs to create a culture where work efforts and contributions are recognized, appreciated and celebrated ‒ and encourages employees' talents and interests. We’ve collected eBooks, webinars, whitepapers, templates and how-tos to help you create and manage a performance rewards program that will inspire your people to excel and drive better business results.