Variable Pay is performance-based compensation, such as bonuses or commissions, that fluctuates with individual or company results, supplementing fixed salary.
- What is variable pay?
Answer: It is performance-based compensation like bonuses. - What are examples?
Answer: Examples include sales commissions or profit-sharing. - What are the benefits?
Answer: It motivates performance and aligns with goals. - What are the challenges?
Answer: Challenges include fairness and predictability. - How does HR handle it?
Answer: HR sets criteria and distributes payments.
