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Variable Pay Definition and Explanation 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.

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