Types of Motivational

Pay
(Organisational Behaviour)

Types of Pay
Variable Pay
When performance exceeds company
expectations, the employees are rewarded.
E.g. Accenture gives variable pay to people
who work hard.
Merit based pay
It is bonus which is given to employees who
perform their job effectively. E.g. Andhra
Pradesh government pays teachers on the
basis of their performance.
Bonus
Bonus is extra payment given out at specific

Types of Pay
Piece Rate Pay
Being paid for the work you do on a piece
by piece basis. E.g. Plumber being paid on
the basis of the number of sinks he fixes.
Skill based Pay
Based on the person rather than the job, it
pays according to the skill acquired by the
worker. Eg. Professors get paid more with
more degrees and/or expertise added to
their resume

 Profit sharing pay

This type of pay is based on the companys
performance. A percentage of the profit is
distributed among its employees. E.g. Godrej &
Boyce distributes the yearly profit of a division
among its employe
es.
Gain sharing
Payouts are made only when performance has
improved over a pre-set standard or target. E.g.
Whole Foods implements gain sharing system
to motivate employees and boost productivity.

 ESOPs
In an ESOP, companies provide their employees
with stock ownership, at a considerably lower
cost to the employees. E.g. Flipkart provides its
employees with ESOPs as do many startups in
India
Flexible benefits
The employer lets the employee choose the
kind of benefits he/she wants so as to offer a
customised plan to every person. E.g. AON
offers its employees a flexible benefit program
such as childcare vouchers or salary sacrifice
pension contributions.

 Intrinsic rewards
A system that rewards the employee with
a sense of meaningfulness, choice,
competence and overall progress. The
employee gets intangible and highly
fulfilling rewards for the work he/she does.
E.g. AGENCY09 lets people work on
projects theyre comfortable with once
they reach a certain level in the
organisation.