Variable Pay
Abstract
The main two reasons for the companies to implement variable pay plan are: motivating employees and reducing cost. In this paper we try to point out the challenges the organizations might face when they apply variable pay system by reviewing related literature. We find that it is difficult for the company to have a reliable measure for the variable pay system. In addition, the focus of the variable pay plan should be on motivating employees or cutting cost and how to strike a balance between these two is also an essential issue. Finally we conclude that we always have to assess the circumstances of the organization before applying the plan.
Variable Pay Plan 3
Variable Pay Plan: One Way to Motivate Employees and Cut Cost.
The companies which try to implement the variable pay system are increasing. More and more American employees who in the past are used to receive fixed pay with annual raises now work under pay systems with uncertain elements. (William M. Mercer......
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Approximate Word Count: 3662
Approximate Pages: 15 (250 words per double-spaced page)
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