As an Amazon Associate I earn from qualifying purchases.

What is Variable Pay in HRM? PDF Download

Learn Variable Pay definition in hrm with explanation to study “What is Variable Pay”. Study variable pay explanation with HRM terms to review HRM course for online MBA programs.

Variable Pay Definition:

  • Compensation linked directly to individual, team, or organizational performance.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Variable Pay Explanation:

Variable compensation is worker pay that changes. It is regularly used to perceive and compensate worker commitment toward organization efficiency, benefit, collaboration, security, quality, or some other measurement considered significant by senior pioneers. This exhibition based installment is normal in the business field where pay is restricted distinctly by the sales rep's capacity to finalize negotiations. The worker who is granted variable pay has gone well beyond their expected set of responsibilities to add to the association's prosperity. Variable compensation is granted in an assortment of configurations including benefit sharing, rewards, occasion reward, conceded remuneration, money. Variable compensation is a normal representative advantage to energize and hold workers. They need the chance to gain variable pay to support their base compensation. What's more, the present representatives are additionally searching for something other than a base pay and advantages bundle when they choose to come ready and work for a business.

Keep Learning HRM Explanations

What is Contrast Error?

Contrast Error is an idea during an exhibition evaluation of an applicant where his/her valuation is affected by the way ...

What is Severance Pay?

Severance pay is the pay and additionally benefits a business gives to a representative after work is finished. Severance bundles ...

What is Structured Interview?

An organized meeting (otherwise called an institutionalized meeting or a specialist regulated study) is a quantitative research strategy regularly utilized ...

What is Just Cause?

Managers reserve the privilege to fire representatives however should pull out that the work is finishing. An exemption to the ...

What is HR Generalist?

A (HR) generalist is a worker in the HR division who handles a wide assortment of duties. With human capital ...

What is In-Shoring?

In-shoring has progressively turned into a savvy decision for inshoring openings is on the grounds that these mid-west states have ...