GENERAL KNOWLEDGE

Detailed explanation-1: -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-2: -Types of Financial Rewards Pay increases and bonuses are a great way to reward employees. A pay increase is a raise in one’s salary or hourly rate of pay. A bonus is a monetary payment given to an employee above his or her salary or pay rate. However, there are many other ways to financially reward an employee.

Detailed explanation-3: -Performance-based pay is compensation directly tied to an employee’s contributions to a company, or the company’s financial performance over the pay period.

Detailed explanation-4: -Performance Related Pay (PRP) provides individual employees with financial rewards linked to an assessment of their work performance, such as: sales commission, bonuses for reaching targets, piecework payments or financial profit sharing.

Detailed explanation-5: -A performance-based bonus is an extra compensation granted to a team member as a reward for reaching pre-established goals and benchmarks. Leadership often rewards their teams with performance bonuses after evaluating outstanding projects or high-quality work performances.