The document provides an overview of variable pay, which is compensation tied to employee performance through bonuses and incentives. It discusses the advantages, such as motivation and accountability, as well as disadvantages like the complexity of measuring performance in different industries. The conclusion emphasizes the importance of setting clear performance guidelines and ethical standards for rewarding employees.

1. VARIABLE PAY
TOPI
C

2. OVERVIEW
• INTRODUCTION.
• VARIABLE PAY PROGRAM.
• THE MOST COMMON VARIABLE PAY PERFORMANCE.
• TYPES OF VARIABLE PAY.
• ADVANTAGE OF VARIABLE PAY.
• DISADVANTAGES OF VARIABLE PAY.
• CONCLUSION OF VARIABLE PAY.

3. INTRODUCTI
ON
Variable pay is the portion of compensation determined by
employee performance. When employees hit their goals,
variable payment is provided as a type of bonus, otherwise
known as incentive pay or commission. Base salary, on the
other hand, is fixed and paid out regardless of employees
meeting their goals.

5. VARIABLE PAY PROGRAM
Variable pay programs are an increasingly
popular mode of compensation in today's
business world.
These programs, which are also sometimes
referred to as "pay-for-performance" or "at-
risk" pay plans, provide some or all of a
workforce's compensation based on
employee performance or on the
performance of a team.

6. THE MOST COMMON VARIABLE PAY
PERFORMANCE
Variable pay – a non-fixed monetary
(cash) reward paid by an employer to an
employee on performance or results
achieved.
 The most common forms of variable pay
are bonuses and incentives.

7. TYPES OF VARIABLE PAY
Bonus
scheme
Sales incentives
(commission)
Over time
pay

8. ADVANTAGE OF VARIABLE PAY
 Variable compensation can motivate
employee's and promote team
building.
 Its also encourage people to take
responsibility for the out come of
their work.

9. DISADVANTAGES OF VARIABLE PAY
 Incorporating bonus into sales and
marketing is simple become success is
easy to measure, where as figuring out
how to calculate wht outcomes you should
in other industries takes alot more
thought
 If you have no clear goals or guidelines,
an incentives program will simply be
money wasted.

10. CONCLUSION OF VARIABLE PAY
Give bonuses to those who increase the company
profitability by creating more efficient system, not those
who cut costs at the expenses of Ethics and morale
Determine how performance will be measured and make
the guidelines principles easy to understand
Set short term achievement goals that require employees
to challenge themselves.

11. Uffiii let's go, goa......
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12. THANK YOU.
Present by: AMIT PATWA