Is performance pay good? Is performance based pay considered salary?

Advantages of performance-based pay.

2.A rigorous, long-term performance-based pay system is an effective way for the company to continuously improve employees' work capabilities, working methods, and employee performance.

3.This approach rewards high-performing employees and also acquires and retains high-performing employees.

4.When the recession occurs, although there is no bonus, due to the low wage cost, the company can also not fire people, less fire people, so that employees have a sense of security and increase employee loyalty; When the economy recovers, the company also has an ample pool of talent.

Disadvantages of performance-based pay.

1.Performance-based pay encourages competition among employees and undermines trust and teamwork among employees. Employees will block information from each other, keep experience, and may even compete for customers. This approach is not suitable for companies that must require teamwork to produce good outputs.

2.Performance-based pay encourages employees to pursue high performance. If the performance of employees does not align with the interests of the organization (department, company), it is possible that the performance of the individual will increase and the performance of the organization will decrease, and this method will lose its value.

3.Employees may compromise the interests of customers in pursuit of high performance. For example, a salesman at an insurance company over-exaggerates the value of a policy in order to close a deal.

When the customer finds out, they may ask to surrender the policy, and at the same time, the policyholder will also have distrust of the insurance company. For example, in order to increase the efficiency, doctors may prescribe high prescriptions to patients and do unnecessary and expensive tests. This practice is contrary to the purpose of the hospital and can also damage the image of the hospital.

4.In administrative institutions, performance-based wages are paid by the leaders of the units, which will also give the leaders of the units greater power, which is likely to lead to more serious corruption by the leaders of the units.

When deciding whether to pay for performance, the question that decision-makers should ask is: Does the performance-based pay system violate the purpose of the organization? Is it conducive to achieving the strategic goals of the enterprise?

Does it improve the performance of the business? As long as the program is suitable, performance-based pay can indeed bring benefits to the business.

Performance-based salary: A system in which remuneration income is linked to performance.

Performance-based pay is not a bonus. Performance-based pay is based on the effective appraisal of employee performance, and realizes a wage system that links wages with appraisal results; Bonus refers to the remuneration paid to the employee for the excess work provided, and is a supplementary form of distribution according to work. Performance-based pay is generally determined based on the performance appraisal results of the core functions of the position, and bonuses are based on the special contribution of employees and the overall collaboration effect.

[Legal basis].Article 4 of the Provisions of the National Bureau of Statistics on the Composition of Total Wages.

The total amount of wages is made up of the following six parts:

1) Hourly wages;

2) piece-rate wages;

c) bonuses; iv) allowances and subsidies;

5) Overtime wages;

6) Wages paid under special circumstances.

Performance-based pay is also known as performance-based raising, incentive pay, or appraisal-linked wagesIt is mainly based on the jobs in which employees are hired.

It is a wage system in which the labor system, personnel system and wage system are closely combined to determine the post level according to the technical content of the post, the size of the responsibility, the labor intensity and the environmental advantages and disadvantages of the post, the total wage is determined by the economic efficiency of the enterprise and the price of labor, and the labor remuneration is paid on the basis of the labor results of the employees

Performance pay consists of four parts: basic salary, age salary, post salary, and incentive salary. The performance-based pay system has its advantages, but it also has its shortcomings.

Purpose of performance salary appraisal:

1. Assess the completion of the performance objectives of the department and employees, and provide a basis for the actual salary of the appraisal.

3. Provide an important basis for the company's overall and partial salary adjustment, annual employee grade evaluation, post adjustment, and qualification evaluation.

4. Improve the skills and performance quality of the workforce, optimize the personnel structure, and maintain the vitality and competitiveness of the company's human resources.

Generally, companies divide employees' salaries into basic wages and performance wages, and many people who enter the workplace for the first time do not know what performance pay means. Let's take a look at what performance pay is. What is the performance salaryWhat is the meaning of performance salary, performance salary, also known as performance salary, reward salary and salary-related to evaluation, based on the workplace where employees are hired, according to the technical content of the workplace, the size of responsibility, labor intensity and environmental advantages to determine the workplace level, to the economic benefits of the enterprise and the labor force to determine the total amount of wages.

It is a salary system that closely integrates the labor system, personnel system and salary system to pay labor remuneration based on the labor results of employees. Performance-based pay is based on the effective evaluation of employee performance, and the realization of a wage system related to the results of wage evaluation, and its theoretical basis is performance-based compensation. What is the performance-based pay scale?

First, the performance evaluation method of public institutions should not be a simple form of wages, but should be fully fair and just, and while standardizing the wage and allowance systems of public institutions, it is necessary to form a rational mechanism for determining the level of performance wages, a perfect distribution and incentive mechanism, and a sound distribution and macro control mechanism. Secondly, performance management should pay more attention to the internal enthusiasm of employees, so that they have a heartfelt love for the unit, a heartfelt sense of the protagonist, enough energy, and a high sense of responsibility. Finally, the reform of performance-based wages should standardize the use of funds by public institutions themselves, so that they can focus more on improving the level of public welfare services.

Measures for the macroeconomic regulation and control of the total wages of overseas enterprises and the reform of the social insurance system.

Wen Hu repented and reminded himThe above is only the current information combined with my understanding of the law, please refer to it carefully!

If you still have questions about this issue, it is recommended that you organize the relevant information and communicate with a professional in detail.

Performance-based pay falls under wages. The total wage refers to the total amount of labor loss remuneration paid directly to all employees of the unit within a certain period of time, and the performance wage is based on the job position where the employee is hired, and the post level is determined according to the technical content of the post, the size of the responsibility, the labor intensity and the environmental advantages and disadvantages, and the total wage is determined by the economic benefits of the enterprise and the price of labor, and the labor remuneration is paid on the basis of the labor sales results of the employees.

[Legal basis].Article 3 of the Provisions on the Composition of Total Wages.

Total wages refer to the total amount of labor remuneration paid by each unit to all employees of the unit directly in a certain period of time.

The calculation of gross wages shall be based on the total remuneration paid directly to the employee.

Legal Analysis: Performance-based pay is a salary stipulated in the labor law. Performance-based wages, also known as performance-based salary increases, incentive wages or wages linked to evaluation, are based on the positions in which employees are hired, and determine the post level according to the technical content of the post, the size of the responsibility, the labor intensity and the environmental advantages and disadvantages, determine the total amount of wages based on the economic benefits of the enterprise and the price of labor, and pay labor remuneration on the basis of the labor results of the employees.

Legal basis: Article 62 of the Labor Contract Law of the People's Republic of China The employer shall perform the following obligations:

1) Implement the national labor standards for the use of shoppers, and provide corresponding working conditions and labor protection;

2) Inform the dispatched worker of the work requirements and remuneration;

3) Pay overtime pay and performance bonuses, and provide job-related benefits;

4) Conduct the necessary training for the dispatched workers on the job;

5) In the case of continuous employment, the normal wage adjustment mechanism shall be implemented.

The employer shall not re-dispatch the dispatched worker to another employer.