ENTREPRENEURSHIP

Detailed explanation-1: -Performance-based compensation is more popular in the United States than it is in Japan or Germany.

Detailed explanation-2: -In the private sector, the incidence rates are slightly higher than they are for the civilian economy as a whole. Some 5 per cent of hours worked is in incentive pay jobs, 39 per cent in performance-related pay broadly defined, and 21 per cent narrowly defined.

Detailed explanation-3: -Performance-related pay (PRP) is a way of managing pay by linking salary progression to an assessment of individual performance, usually measured against pre-agreed objectives. This factsheet explores the justification for linking pay and performance as well as the potential issues around implementing PRP schemes.

Detailed explanation-4: -PRP is a method of remuneration that provides individuals with financial rewards in the form of increases to basic pay or cash bonuses which are linked to an assessment of performance, usually in relation to agreed objectives. This definition captures what performance related pay is all about.

Detailed explanation-5: -Long-term PRP schemes are used to persuade staff to stay employed at a business. They usually involve giving out things like, a pay rise, company shares, or salary progression. By investing in employees this way, it motivates them to stay working for you. This leads to higher staff retention and business loyalty.