HR Glossary

What is Performance-Based Pay?

Compensation directly linked to individual, team, or organizational performance outcomes, including bonuses, commissions, merit increases, and profit-sharing tied to measurable results rather than tenure or job title alone.

Why it matters in hiring

Performance-Based Pay comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with P

• Performance Improvement Plan (PIP)
• Performance Management
• Performance Rating
• Performance Review
• Perquisites (Perks)
• Pet Insurance
• Phantom Stock
• PIPEDA - Personal Information Protection (Canada)

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