What is Performance Related Pay Financial Reward System

, performancerelatedpay, hr, employees, prp, financialreward, performancepay What is Performance Related Pay Financial Reward System Lesson Summary: Performance Related Pay (PRP) provides individual employees with financial rewards linked to an assessment of their work performance, such as sales commission, bonuses for reaching targets, piecework payments or financial profit sharing. Performancerelated pay (PRP) is similar to a pay scheme that aims to reward employees for aboveaverage work performance. As a result, employees are more likely to focus on what they need to improve in their work if this is directly linked to their pay. A good PRP system will reward the best performers making it easier for the business to retain top talent while helping manager identify and reduce the number of poor performers. This way each contribution an employee makes could be recognised with such a tangible reward. Regarding the disadvantages of such a financial reward system, employees can be demotivated if the goal