What is variable reward?

remuneration represents a payment or compensation provided to an individual for general employment or services provided. Variable remuneration is a payment method that changes with any given activity. All companies use a form of variable remuneration to reward employees for work or completed activities. In some cases, companies can provide a variable reward in addition to solid salaries, including bonuses. This type of remuneration can have a wide definition when it is accepted as part of the total package of company compensation for different types of employees. For each hour worked, the company gives employees a standard wage. The amount paid for an hour varies to each employee depending on the employee's knowledge, skills and abilities. The market rate for certain types of employment can also affect an hourly reward. Overtime can also be part of the remuneration of variables, as employees who work for a certain amount of hour each week receive higher hourly wages. JAKO Another incentive can be paid positions - management and otherwise - to receive a part of the variable reward. For example, a sales position can offer a small salary in this department. The remuneration package will include additional payment for each item sold by an individual. The package with variable remuneration allows the worker to increase his reward depending on work and efforts spent to work.

Bonuses or one -off rewards can also be included in a package with variable reward. The reward of bonus or compensation may depend on the performance for a given time period. Individuals can obtain a number of special compensation depending on their actions and abilities to meet the goals. Failure to meet the goal simply means lower remuneration, hence the variable nature of this payment plan. In many cases, the bonus or compensation reward pays employees quarterly or annually.

the purpose of offering variable oThe ears are double. First, companies can reduce their initial costs of hiring employees. Lower fixed salaries result in lower total costs each month for business. Second, employees often work hard to achieve salary goals, which benefits companies and employees. The most important part of this reward package is to create a competitive reward; If you do not do so, it can create a scenario where individuals are not willing to work hard to increase the low salary potential.