The adoption of forms of remuneration linked to performance is growing worldwide.
With the drastic changes we have experienced in recent years and will continue living in future years, an increasing number of companies that are looking for ways to create and deploy more effective and relevant Compensation Programs, and seek, attract and retain talents. There are several forms of recognition and reward to deploy a variable remuneration system which include:- Short terms Incentives (Profit Sharing, Gain Sharing, etc);
- Strategic Compensation;
- Long-term Incentives;
- Lump Sum;
- Bonus Program;
- Awards for Individual Performance / Collective Performance, among others.
- Strengthening participatory culture and teamwork;
- Participate and engage employees in the results of the Company;
- Enable greater gains linked to individual and / or collective performance;
- Search quality improvement and cost reduction;
- Replace the fixed costs of the Company by variable costs.
- A modern Variable Pay system should consider aspects such as:
- Organizational Structure x Strategies;
- Structure x Practice Procedures;
- Management policies (Ex .: decentralization, business unit, etc.);
- Performance indices;
- Mix between fixed Salary and Variable Pay;
- Incentive Payment frequency and more.