Pay-for-Performance

Pay-for-performance is a compensation strategy where employees' pay is directly linked to their job performance, typically through bonuses, incentives, or salary increases. This model rewards employees for meeting or exceeding specific performance goals, aligning individual efforts with organizational objectives. Pay-for-performance aims to motivate employees, boost productivity, and drive business success by providing tangible rewards for achievements. It encourages a results-driven culture and fosters accountability, as employees are incentivized to perform at their best.