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Rewards employees for their achievements

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Employees may not be motivated

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Employees may become too focused on selling and may pressure customers or ignore teamwork/customer needs.

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Motivates employees to make more sales because their pay increases with performance.

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It can feel unfair if performance evaluations are biased, unclear, or if raises are too small to feel meaningful.

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Rewards employees for strong performance, so it can motivate people to improve and keep doing good work.

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Employees may rush the work, which can lead to mistakes, safety issues, or lower quality.

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Employees are rewarded for finishing a task faster than the standard time, which can encourage efficiency.

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Employees may focus more on quantity than quality, and it may not work well for jobs where output is hard to measure.

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Employees are paid based on how much they produce, which can motivate them to work faster and be more productive.

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Increased competition in the work place and can create animosity among employees

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Rewards top performers with pay that compensates the effort they’ve put in

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Sometimes increased competition can decrease productivity and motivation

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Employees may be challenged to work harder to earn more pay

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Employees may not be motivated to do more work that what is explicitly expected from them

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Workers are paid fairly for the agreed set of hours worked in a week

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Employees may feel like they’re always competing for compensation and could rush through a job, just to make money

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This pay system can be good because it motivates employees to work efficiently, creating more products for more money

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commission based pay is not relevant for a lot of jobs. It also is an unreliable way of getting paid.

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encourages workers to work hard. The employees ultimately decide how much they make based on the effort they put in

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merit pay can be bad because there is increased tension between employees.

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may motivate employees to work harder and give effort to produce good quality products/ service

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quantity or quality of products may not be as good or consistent among employees

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this is a reliable way of pay, employees are getting paid no matter the quantity of work produced

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piecework could be bad because the quality of the work may be less because employees are more focused on quantity rather than quality.

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piecework compensation will help meet company quotas and will motivate employees

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Commission can be negative since pay can be totally dependent on time of year (season) or consumer preferences, rather than employee performance, and what they bring to the organization overall.

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Commission is a direct incentize form of pay to motivate employees to work harder. This is true if an employee works solely off of commission, or if it is a added bonus on top of base pay.

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Merit Pay encourages employees to work harder to reach exceptional expectations. Even though it is a smaller percentage, it allows fair opportunities for everyone to become the highest performer.

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Merit pay can encourage competition due to the distribution of pay %. This can cause hostile work environments between employees, and also between employees and managers.

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Since employees are encouraged to work fast, employees may rush and speed through their work in hopes of higher compensation, or to be deemed more favorable in terms of efficiency.

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Standard hours can be benefical as more quanity of products are produced. Which in terms can also increase overall efficiency.

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An example would be an employee working hard on a specific product, but only getting paid for one product since they worked on it for a long time. Compared to making 3 or 4 mediocre products

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Piecework can be a good thing as employees will become more motivated to create more products, and produce more for an organization.

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May become unstable, especially if sales are slow. It can also pressure employees to focus too much on making sales instead of helping customers honestly.

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Good because it motivates employees to sell more and directly connects pay to results. It works especially well for people who are competitive, outgoing, and motivated by financial rewards.

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May feel unfair if performance evaluations are biased or unclear. Employees might also become competitive instead of collaborative if they feel they are being compared too much.

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It rewards employees based on their performance. It can motivate workers to improve, work harder, and feel recognized for doing a good job.

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Employees may rush through their work just to finish early. This could lower quality or cause mistakes if speed becomes more important than doing the job carefully.

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Can be good because employees are rewarded for finishing work efficiently. If they complete the job faster than the expected time, they still get paid for the standard amount of time.

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Employees may focus more on speed than quality. It can also lead to stress or unsafe behavior if workers feel pressured to produce as much as possible.

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Rewards employees for producing more. It can increase productivity because workers know they will earn more when they complete more units or tasks.

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Doesn't really help employees to get their work done or motivate them to go above and beyond

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encourages employees to make sales and also they are more motivated because they feel like they have a personal stake in each one

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since it is based of individual sales, employees may be more focused on their own sales rather than the company’s interests as a whole

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can motivate employees! more/better work = more/better pay

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Can lead to a competitive environment between employees

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similar to piecework again, quality may decline as workers prioritize speed for more money

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like peicework, can increase productivity and efficiency

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work can become rushed or quality can become overlooked

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encourages productivity and efficient outputs

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During economic downturns, employees income can be unstable.

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Encourages employees to attain high performance levels for a greater potential income.

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Commission can be bad because income is sometimes a bit more unstable. Being dependent on sales is harder to control then a steady salary.

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Commission is good because it is essential pay based off the work that the employee puts in.

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It sometimes can be bad in the workplace if it feels that someone was rewarded with benefits based off of unfair favoritism.

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Merit pay can be a great thing because it serves as motivation, rewarding employees for hard work.

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Where standard hours can be bad is when workers finish things early and are left doing nothing. This results in getting paid for time that they aren't using efficiently or when they may not actually be working hard.

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These are good because they provide a stable schedule and income.

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It can be bad because in turn to the idea of making more when doing more, work may be rushed and people make focus on quantity over quality.

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I think piecework can be a good thing in the workplace cause it serves as motivation as workers will be able to earn more, the more they produce.

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Commissions can be negative for people with less extrinsic motivation. The money earned from carrying out a task or generating revenue may not be a proper incentive structure for them. They may value other forms of incentives.

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Commission is great for people with high extrinsic motivation. It incentivizes them to carry out as many tasks or deals as they possibly can to get paid more from each task or deal or whatever they are making commission off of(which is almost always from revenue generated). This incentive structure is in alignment with both the workers and the organizations goals, thus when the company gets paid the worker gets paid.

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Performance criteria has to be effective in that it ties the organizations goals to the workers goals and is in the scope of possibility. Setting criteria too strict that it makes it almost impossible to reach proper or above performance standards can deter an employee from reaching said goal because it may be literally impossible to get a pay raise, thus decreasing motivation and productivity. Workers may also cut corners and disregard certain policy to meet certain metrics. Some workers also may favor other incentives, and its why the mixed scorecard exists.

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Merit pay is sufficient as an incentive for a company that is looking to nurture and grow with their employees. High performers will outrank the rest of the workforce within the company, thus earning more year over year and will earn the company more money. The rest of the workforce either stays stagnant in pay. Organizations can allow mid workers to stay in their positions and can make proper decisions about the low performers(firing or training).

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Makes employees work harder by paying them more

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Makes employees work harder by paying them more

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The quality would decrease, the employees would just want to get the work done

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The quality would decrease, the employees would just want to get the work done

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Workers will work as fast as possible so they have more free time. 

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Workers will work as fast as possible so they have more free time. 

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It would definitely lower the quality and cause burnout

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It would definitely lower the quality and cause burnout

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It is good because it helps more products get created

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It is good because it helps more products get created

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It makes employees want to just put as much things out there that is worse

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It makes employees want to perform well because they are commissioned for it

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Can push towards unethical or opportunistic behaviours

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Push employees to perform and achieve higher level of individual sales

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Efficient does not mean effective. Fast work can bring mistakes.

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Can encourage employees to upsell products too much to get a larger cut of the money.

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It is effective for sales positions because it rewards employees for generating revenue. However, it should be balanced with ethical standards, customer satisfaction, and possibly a base salary.

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Unpredictable omissions for employees and employees may focus on closing deals and jobs rather than the quality of work

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Good for rewarding individuals with jobs that salary works well for the organization. Extra compensation or time to "reset" get ready for the next piece of work can come as a benefit and motivate workers to work hard while having the option to still get paid what they are expecting if they decide to finish the job at a typical rate.

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It deincentivizes cooperation and collaboration with each other at the work place

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Results oriented method of pay that encourages employees to make more sales.

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Rating can be affected by biases and stereotypes and not be objective

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Merit may not always be recognized accurately

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Merit may not always be recognized accurately

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High motivation and the costs for commission based salaries line up with cost alignments

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Can stimulate employees' improvement over a medium-long period

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In general, rewarding people based on performance is fair and motivating, especially when performance standards are clear and evaluations are accurate.

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This can make employees very draining but still will try to achieve the desired results

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Since performance is on the line, it incentivizes the employees to out perform their coworkers and make the company competitive

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High fixed costs for giving everybody a pay raise if asked

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It rewards efficiency because employees can benefit from finishing work faster, while still having a clear expected standard.

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This gives high motivation for the extra effort you put to achieve great benefits

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Encourages employees working harder and beyond the call of duty

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Can be bad because the metrics for evaluation can be seen as subjective by some employees, creating a sense of unfairness.

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Builds loyalty with the employee in conjunction with how much work they complete and pay given

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Standard time can be difficult to be set in a correct way

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Employees may not want to over perform or try their best but just do the minimum in a certain amount of time

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Employees can feel Unsatisfied or feel unfairness

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It can increase productivity, but it can also encourage rushing, lower quality, stress, and unfairness when workers do not control how many units they can produce.

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Can be good because there will be greater attention to detail when completing a job, potentially increasing quality.

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It rewards employees that are efficient