Why do Employers appear to compensate some of their workers for engaging in high-performance workplace practices?

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Expert Solution

Sometimes employers compensate their employees - in cash or in kind - for their high performance. These are known as performance-linked-incentives.

Performance-linked-incentive is a form of payment from an employer to an employee directly linked to the performance output of the employee. It may be specified in the employment contract. These kinds of incentives are normally applicable to revenue-generating activities.

Performance incentives are the most tangible ways in which a company can motivate its employees. These incentives are necessary in order to make the employees perform more productively, as well as rewarding them for higher performance results in more acceptance towards the company and hence lower turnover ratios.

Rahul Sunny answered 1 year ago

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