Performance Payments and Their Benefits

Subject: Employee Management
Pages: 2
Words: 570
Reading time:
3 min
Study level: College

Employees at every company are usually rewarded for their active participation in diverse projects. Performance payment can be directed to individuals, groups, and organizations. The rewards can be different, but they often motivate workers to complete their tasks (Bryson et al., 2017). Employees decide which type of performance pay attracts them more based on the working conditions and the general environment in the working place. If I were working in a successful company with a competent manager and a motivating atmosphere, I would choose to receive individual performance pay. Personal growth and achievement of unique goals stay the main priorities. Even though teamwork is crucial in many successful organizations, individual performance helps workers increase their professional skills.

Performance payments can be presented in different forms, like merit bonuses, payments for extra working hours, and financial advantages for an excellent job. If I had a chance to work in a huge company where the relationship with workers is highly evaluated, I would strive for short-term schemes that include a commission for specific tasks. This type of performance pay may keep an individual motivated throughout the work and participate in more projects which can maintain financial stability and ensure growth in the profession (Best et al., 2017). Commissions are usually distributed among employees at the end of any project, and they are not always related to the main monthly salary. Nevertheless, there are many other payments that attract individuals, and it is important to try as many as possible to understand which one is the most beneficial.

The commission might be the best type of performance pay as it inspires workers to work on different tasks with more passion and receive extra money for their effort. The amount of commissions paid depends on the general individual outcome of every worker. For instance, managers in the sales industry might provide their workers with this type of performance pay when an individual sells more goods or services than the average. At the end of the month, employees may expect a higher salary, and the higher their contribution to the organization’s activities, the better benefit they can receive. Other performance payments can be mixed with monthly payments and have an initial bet which may not bring much income. Consequently, when workers know that their payment is commission, they can be sure that the received percentage from participation in the extra project will be high and valuable.

The primary commission rate is set before participating in additional business plans, and employees have a chance to decide whether they are interested in the activity and provided salary or not. This is the main point that makes me think that this type of performance pay is the best. As an individual who might work in a huge organization, I would strive for commission rewards. Based on my experiences may motivate me and make me an exceptional worker in any industry. Moreover, when companies pay attention to workers and evaluate their passion related to individual growth, the general attitude increases and becomes more competitive. Organizations that provide this type of reward attract professionals with a huge experience in diverse spheres. Those individuals usually help improve the stability of such companies and make them more successful. Graduates from universities and colleges might also find these organizations attractive as managers typically give a chance to communicate with other workers and gain more knowledge to develop individual skills for future career success.


Best, M. C., Hjort, J. K., and Szakonyi, D. S. (2017). Individuals and organizations as sources of state effectiveness, and consequences for policy design. Academic Commons.

Bryson, A., Forth, J., and Stokes, L. (2017). How much performance pay is there in the public sector and what are its effects? Human Resource Management Journal, 27(4), 581-597. Web.