Base pay is the first thing most of us think of when someone asks, “How much money do you make?”

The reality is that many of us also receive variable pay.

Variable pay is the cash compensation we receive that is dependent on our performance. You might receive a bonus, incentives, sales commissions, or a spot award.

You might also receive profit-sharing or a retention bonus. There are referral bonuses and project bonuses.

Employers like these types of payouts because they are based on your performance and contribution toward the company’s goals.

Base pay is fixed. An employer has to pay it regardless of your performance.

So, when you’re negotiating and are a consistent high-performer don’t forget about variable pay.

And if you are an employer looking for ways to motivate your team and keep them productive while also managing your labor cost - don’t forget about variable pay.

It is a powerful way to get an employee’s attention.

#variablepay #rewards #compensation #incentives #humanresources #leadership