Performance Based Pay
A performance-based pay is a common and unifying concept for modern business. It is fair and transparent. Companies have been implementing performance-based pay policies with varying degrees of success. While there are still challenges to be overcome, the benefits of doing so are undeniable. According to educator Jonathan Osler San Francisco, performance-based pay is a common and unifying concept for modern business. Below we will discuss how performance-based pay works.
1. Rewards Program
Performance-based pay is a rewards program based on employees’ achieving specific goals and objectives. It is a reward plan where the reward is not simply based on how well someone does their job but also how well they do their job relative to other employees.
2. Lottery Ticket
Performance-based pay can be compared to a lottery ticket because it provides a chance of winning if the employee meets specific goals and objectives. There are criteria such as time spent at work and quality of work to qualify for the prize. Employers can use the requirements to measure performance and determine which employees should receive rewards while others should not.
3. Bonus
A performance-based pay can be compared to a bonus. The employee does not need to meet specific criteria to qualify for the bonus. Employers can use the bonus as a motivational tool since it provides an immediate reward for good performance and is not tied to specific criteria.
4. Fringe Benefits
A performance-based pay can be compared to fringe benefits. The main difference is that a fringe benefit is something that an employee receives in addition to their salary. In contrast, performance-based pay is something that an employee receives in addition to their salary. In other words, a fringe benefit is something that an employer gives to its employees to recognize and reward them for their efforts. At the same time, performance-based pay is when an employer provides its employees with compensation for their actions.
5. Cash Bonus
A performance-based pay can be compared to a cash bonus. The difference between these two rewards programs is that cash bonuses are given at the end of the year after the employee has completed their work. In addition Performance-based pay is provided at the beginning of the year before they have done any job. A cash bonus is given for good performance in a specific period, whereas performance-based pay is given for good performance.
6. Employee Stock Options
A performance-based pay can be compared to employee stock options. The main difference between these two rewards programs is that an employee stock option is something an employer gives its employees as compensation for their efforts. In contrast, performance-based pay is something that an employer gives its employees as compensation for their actions.
Jonathan Osler San Francisco believes that being a good employee is not about getting the highest salary or the most benefits but about being proactive and doing work well, which includes having pride in one’s work, working well with others, and being open to new ideas.