Is
performance-based pay effective? Why or why
not?
Yes, performance-based is pay effective, because-
- It drives an employees to go beyond his comfort zone to achieve
his targets
- It sets a target, on completion of which, proper incentives are
paid to employees
- performance-based pay acts as a motivation to employees
- It triggers a sense of competition among employees, which makes
them outperform their coworkers, thus eventually profiting the
company
- Employees always want to complete days task as that decides
their pay, thus company does not have take tension of targets