Variable Compensation. Variable pay on the other hand constitutes all cash compensation that is paid to employees above or in addition to their fixed pay. Current economic conditions make variable pay an important option to explore when looking for ways to control compensation costs.
It provides the direct linkage of pay to performance. Current economic conditions make variable pay an important option to explore when looking for ways to control compensation costs. Jan 14 2020 Wages and salary typically fall under the category of base pay whereas bonuses and commission fall under the category of variable pay.
Variable pay includes any type of bonus incentive pay or sales commission that is based on performance and is not guaranteed.
Using variable compensation components allows you to control fixed costs while providing a competitive pay package. Using variable compensation components allows you to control fixed costs while providing a competitive pay package. Mar 05 2021 Variable compensation has been frequently shown to motivate salespeople to work harder and thus achieve higher performance. During the Term of this Agreement the Executive is entitled to participate in Companys Variable Compensation Plan under which heshe may.
