JOBS AND SALARIES PLANS

VARIABLE COMPENSATION

Compensation needs to be more than just an administrative responsibility but also a strategic tool. How can this be done? It is a factor of attraction, motivation and resilience to your employees, either in group or individual activities.

WHAT IS VARIABLE COMPENSATION?

Variable compensation is a set of rewards that complement the salary of an employee and can be used in traditional situations such as sales commissions, premiums for production and other similar forms. It may be based on individual performance of the employee, or of a team or even a company as a whole, which will be measured with the help of performance indicators, for example.

BENEFITS OF VARIABLE COMPENSATION

  1. Setting goals that encourage individual or collective resilience

  2. Creates links between the employees and the company

  3. Turns fixed costs into variable: total compensation remains balanced, not harming the company.

TYPES OF VARIABLE COMPENSATION

It can be accomplished through awards and incentives and should be linked to performance targets, including profit sharing or compensation based on performance.

BONUS

It is generally granted to executives and potential executives, and may be a percentage of the annual wage or a multiple of the base salary, varying in accordance to results or individual performance.

PROFIT SHARING

Works as a bonus that is offered by the employer and negotiated with a committee of employees in accordance to the company's results (profits). It demands approval from the union, budget and managers to lead the negotiation. Once Profit Sharing is set, it should be extended to all employees, even if the amounts are different.

BONUS

It is generally granted to executives and potential executives, and may be a percentage of the annual wage or a multiple of the base salary, varying in accordance to results or individual performance.

PROFIT SHARING

Works as a bonus that is offered by the employer and negotiated with a committee of employees in accordance to the company's results (profits). It demands approval from the union, budget and managers to lead the negotiation. Once Profit Sharing is set, it should be extended to all employees, even if the amounts are different.

We create a variable compensation model in the form of profit sharing or bonuses, always linked to goals that encourage employees to have a better performance, and go beyond. Our models follow market practices, in order to maintain your company's competitiveness and the motivation of your employees.

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