Variable pay is any (typically) cash compensation
paid in addition to an employee’s base salary.
Variable pay is based on the performance of the individual,
team, department, division, and/or company.
Variable pay compensation is often linked to incentivizing
employee performance, and giving the employee a way
to share in the reward for being productive. While
not applicable for every situation, a great many organizations
have instituted different types of variable pay systems
with different levels of success. Many organizations
take a look
at many employee compensation methods for the purpose
of enhancing productivity in the workforce, and variable
pay for executives and managers as well as regular
employees are generally considered. It is not uncommon
to find some form of results oriented variable pay