Abstract
Pay-for-performance compensation plans have a dual nature — increasing both productivity and financial insecurity among employees — so leaders may feel like they’re walking a tightrope in trying to get the balance right. While the PFP model can motivate current employees and help attract high performers, the financial incentives inherent in PFP can also shape a cutthroat culture and contribute to employee burnout and turnover. Learn three ways to design pay-for-performance plans wisely.