3 Steps to Establish Variable Pay Programs
Variable pay – payment of short-term incentives and bonuses- is becoming an increasingly popular mode of compensation in today’s business world. A recent report states these incentives have skyrocketed from 4% of payrolls in 1988 to 13% in 2016. The rise of variable compensation throughout organizations reflects the priority of aligning compensation with performance while keeping fixed costs under control. How do you instate a successful variable pay policy at your company?
Take these 3 steps to establish a successful variable pay system: