one benefit of variable pay schemes.- the reduction of labor costs, layoffs, a better match between the system variables in the labour costs of the capacity to pay.- improving the competitiveness of the market and the products and services to facilitate the attraction and retention of employees with skills in high demand, employees more efficient.- improvement of the working environment, these systems require results to achieve and to prescribe how to achieve them. they stimulate the motivation and commitment to improving the performance of individual, collective and organizational. they also encourage the sharing and collaboration: beneficial effect on people's behaviour and attitudes.- the means of communication, feedback and mobilization: these systems allow organizations to communicate to the staff, which is important, how it monitors and provides feedback.n. b: any variable compensation plan is effective by itself. the effectiveness of any system depends upon how it is managed.
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