Reference no: EM133138407

Pay for performance is gaining in popularity and is useful as both a total rewards program and cost control. Performance evaluation is based on the accomplishments of an individual employee within the job and the performance-based rewards are tied to some measure of job performance.

Does your company give out merit increases based on performance or do you receive performance bonuses? Are the payouts (i.e. increases or bonuses) based on a subjective scale or are their quantifiable results tied to the payouts?

At the University where I work, there are several ways employees get increases or bonuses based on performance:

• Performance-based increase that is added to the base salary (based on their performance evaluation);
• A one-time performance bonus (based on their performance evaluation)
• A merit award, which is also based on their performance evaluation, but is a smaller amount than and comes from a pool of funds set aside annually by the University President and given to each division or departmental area to distribute based on set criteria, which can be a biased way of giving money to employees in my opinion. 

There are also spot awards for performance beyond the call of duty that is at the discretion of supervisors as well as project-based bonuses for excellent performance during a project that is outside of an employee's job.

Please share your thoughts and experiences