Definition
Principle of remuneration in which the remuneration is differentiated depending on requirements and performance. As performance key figures, performance characteristics that can be influenced by the employee may be applied individually or in combination. .For the remuneration of the performance result the actual performance achieved is put into relation to the targets (target performance). Of further importance are:
- Premium basic remuneration corresponds to the part of pay, which is dependent upon the requirements. (basic pay, pay scale) and is granted for the performance that is defined by the premium basic performance (REFA Normal performance, reference performance).
- Performance results in excess of this are
- payed on a performance related basis.
- Final premium remuneration is the maximum achievable performance-related remuneration proportion that is payed when the maximum performance result, the premium final performance, is achieved.
- The final premium performance is the maximum performance that can be achieved in a premium payment system.
Premium remuneration line describes the performance-remuneration ratio between performance result and premium amount. Its course is determined by the company’s goals, taking into account the employees’ ability to influence the performance result and is meant to motivate employees to achieve the desired performance result.
Bettina Dirks
