
Performance-Based Pay.
“Performance-based pay systems can motivate workers to put in the effort to earn their pay, but they can also cause them to feel more stressed out at work and make them less satisfied with their jobs.”
Widely implemented among businesses of different sizes and industries. Although employers have grown to like performance-based pay over time, it might not be as efficient as some people think. According to studies, some incentive-based compensation arrangements have unfavorable outcomes instead of inspiring personnel.