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Performance Incentive programs and Performance
Pay programs are not the same. While both use increased compensation to motivate high
performance, the timing of the payment and its effect on base pay differ. Performance pay
is a reward for outstanding past performance. The decision to award performance pay and
the amount of money available to fund performance pay increases is usually not known far
in advance. Performance pay is usually added to base pay, permanently increasing it. Performance Incentive programs are offered to employees before
actual performance and are usually one-time payments that do not permanently affect the
base salary. Incentives are tied directly to employee, building, or district performance
goals. Incentive programs can be short or long term. |
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