Benefits of Performance Related Pay
Benefits of performance-related pay • Top Article • All 3 Articles
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by Amreen Bi
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Created on: August 20, 2011 Last Updated: August 23, 2011
Employers can use a number of incentives to help boost staff performance. One of the most well-liked by both employers and employees alike is performance-related pay. Performance-related pay involves being paid based upon your performance at work.
An incentive such as performance-related pay is usually given to help achieve a certain goal. Both employers and employees can find many benefits of performance-related pay. Performance-related pay can have the following benefits for businesses:
* Increase staff productivity: Most employees are motivated by money and offering them an opportunity to earn more helps to boost their productivity significantly.
* Staff are more motivated: Staff will be paid more based upon their performance so they have more control. As they meet targets they will feel more confident and motivated.
* Retain existing employees: Employees can feel that the business is offering them something and so they are more likely to feel loyal to your business.
* Attract new talent: Businesses are always in search of fresh new talent and a performance-related pay can help to encourage new talent to join your business.
* Achieve goals: Incentives such as performance-related pay can help to encourage employees to focus on achieving a personal or team goal and achieve the targets you have set out.
Staff members too can benefit from a performance-related pay incentive. Here are some of the benefits of performance-related pay for employees:
1. Rewards: For the work they have done and targets that have been met employees are offered a reward.
2. Satisfaction: Employees can feel that their hard work is being appreciated by their bosses and this can lead them to feel satisfied.
3. Better pay: Many employees are often paid the minimum wage. An performance-related
[pic][pic][pic]2 of 3
by Amreen Bi
[pic][pic][pic][pic]
Created on: August 20, 2011 Last Updated: August 23, 2011
Employers can use a number of incentives to help boost staff performance. One of the most well-liked by both employers and employees alike is performance-related pay. Performance-related pay involves being paid based upon your performance at work.
An incentive such as performance-related pay is usually given to help achieve a certain goal. Both employers and employees can find many benefits of performance-related pay. Performance-related pay can have the following benefits for businesses:
* Increase staff productivity: Most employees are motivated by money and offering them an opportunity to earn more helps to boost their productivity significantly.
* Staff are more motivated: Staff will be paid more based upon their performance so they have more control. As they meet targets they will feel more confident and motivated.
* Retain existing employees: Employees can feel that the business is offering them something and so they are more likely to feel loyal to your business.
* Attract new talent: Businesses are always in search of fresh new talent and a performance-related pay can help to encourage new talent to join your business.
* Achieve goals: Incentives such as performance-related pay can help to encourage employees to focus on achieving a personal or team goal and achieve the targets you have set out.
Staff members too can benefit from a performance-related pay incentive. Here are some of the benefits of performance-related pay for employees:
1. Rewards: For the work they have done and targets that have been met employees are offered a reward.
2. Satisfaction: Employees can feel that their hard work is being appreciated by their bosses and this can lead them to feel satisfied.
3. Better pay: Many employees are often paid the minimum wage. An performance-related