Incentive Pay Definition
Incentive pay rewards higher productivity with higher pay. Based on company policy, incentives may either be based on individual performance or the performance of the business as a whole.
Incentive Pay Extended Definition
Incentive pay is also known as pay for performance or variable pay. These refer to compensation in addition to base wages.
Incentive pay can help motivate employees to perform their best and boost company profits. Incentive pay plans offer workers a chance to increase their annual pay based on the overall business performance or individual performance.
Incentive Pay and the Types to Know
Last Updated By
Rachel Blakely-Gray | Apr 27, 2023