Variable Pay is the portion of sales compensation determined by employee performance. When employees hit their goals, variable pay is provided as a type of bonus, incentive pay, or commission. Base salary, on the other hand, is fixed and paid out regardless of employees meeting their goals. Together, variable pay and the base salary make up what is known as pay mix.
Variable Pay is basically employee compensation that changes. Variable Pay is any number of bonuses, incentives, commissions, and other cash compensation that is dependent on employee performance. Here is everything you need to know about Variable Pay including its types, advantages, disadvantages, and more.