What is pay for performance?

For indeterminate employment, remuneration refers to the material, monetary (wages, cost of living bonuses, premium pay, bonuses, etc.) or other (paid leaves, services and privileges, etc.) compensation as well as the psychological benefits (personal growth, satisfaction, pride, etc.) received by individuals in return for assuming the roles and duties inherent to their position and, depending on the practices in effect, in recognition of their individual performance or contribution to organizational performance. These direct and indirect benefits are intended to compensate individuals for their contribution and motivate them to join, remain with and give the best of themselves to organizations. However, when professional or technical services are provided under a fixed-term contract, the meaning of “remuneration” (or, in this instance, “pay”) is often more limited in scope. For example, it may merely refer to direct compensation in form of professional fees, emoluments and payments for specific services that are provided during a set period of time.