In a tight talent market where employees have choices about where they commit their time and talent, variable pay is frequently used as a retention, recruitment, and motivation tool. PayScale’s 2018 Compensation Best Practices Report (CBPR) reveals that nearly three-quarters of organizations give some type of variable pay.
At a time when increase budgets are tight, organizations are starting to shift their rewards towards variable pay over fixed costs (base salary). Doing so allows them to really shell out the cash for their highest performers … but only if they use the right kinds of variable pay.
In this whitepaper, we will discuss:
- Get a deeper understanding of the variable pay options
- See benchmarks on what kinds of variable pay are typical
- The business and cultural impact of making different variable pay choices
- Guidelines and tips for creating a variable pay plan in your organization