incentive wage
Noun: An "incentive wage" is a form of compensation designed to motivate workers by linking pay directly to their performance, productivity, or output. It is a wage system where earnings increase as the worker produces more or achieves specific targets, such as piece rates, bonuses, or commissions.
- (A pay system that rewards higher output.)
- (Compensation tied to performance metrics.)
"Incentive wage system": A structured method of remuneration where wages are partially or fully determined by measurable work results.
- The company shifted from a fixed salary to an incentive wage system to boost efficiency. (A pay structure that aligns earnings with output.)
"Piece-rate incentive wage": A specific type where workers are paid per unit produced.
- Under a piece-rate incentive wage, garment workers earn more for each additional shirt they sew. (Pay per item completed.)
Incentive (n): something that motivates or encourages action.
- A bonus is a common incentive for meeting sales goals. (A motivator for performance.)
Wage (n): a fixed regular payment for work, typically paid on an hourly, daily, or weekly basis.
- The minimum wage was raised to improve living standards. (Basic pay for labor.)
- Performance-based pay: compensation tied to individual or group achievements.
- Productivity wage: a wage that varies with the amount or quality of work done.
- Merit pay: a pay increase based on evaluated performance.
Pay for performance: a principle where compensation reflects actual results.
- Many tech firms adopt pay for performance, offering incentive wages to engineers. (Rewarding work outcomes directly.)
Carrot and stick approach: a method using rewards (carrot) and punishments (stick) to influence behavior.
- The incentive wage is the "carrot" in the carrot and stick approach to employee motivation. (A reward-based strategy.)