Variable Pay’s Role in Organizational Performance

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Presented by: Samantha Conroy, Ph.D., Professor - Colorado State University

Variable Pay (also referred to as pay-for-performance or PFP) is pay that varies with performance or some other measure tied to the firm’s success. It has great potential to drive desired behavior, but can also be problematic when poorly designed. In this session you will learn:

  • What are common forms of variable pay and dimensions of variable pay design
  • What organizational and team factors should be considered when designing variable pay programs
  • How communication relates to variable pay program success

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