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The term is often referred to when one is addressing the topic of variable pay based on performances. Although not generally recognised, the term pay for performance should, to my opinion, include as well, aside of variable pay, fixed pay and intrinsic rewards.
According to Dreher and Dougherty most current pay systems are not related to performance but only to circumstances and skills and competencies: ‘Most pay structures can be labelled job based pay (…). Some firms introduced a new pay system toward a skill- or competency based pay. In these systems employees are given pay increases as they acquire additional skills or competencies, not as they move to a job in a higher pay range’ ...
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