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Pay for Performance Planning and Management



Performance-related pay is money paid to someone relating to how well one works. This standards-based system is used for evaluating employees and setting salaries by many employers. Standards-based methods have been in de facto use for centuries among commission-based sales staff: they are paid more for selling more, and low performers do not earn enough to make keeping the job worthwhile even if they manage to keep the job. In addition to motivating the rewarded behavior, standards-based methods can provide a level of standardization in employee evaluations, which can reduce fears of favoritism and make the employer's expectations clear.Employees would be secure in knowing that their performance was evaluated objectively according to the standard of their work instead of the whims of a supervisor, or against an ever-climbing average of their group. - Source Wikipedia


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