Types of Pay

• Merit pay system - is a system where employees are rewarded based on their individual performance.

  (No Motivation by supervisor/ manager)
• Pay-for-performance - initiatives typically provide guidelines that explain what behaviors or performance evaluation results lead to increased pay.

  (Includes Motivation)

  Also called earnings-at-risk (EAR) plans
• Supplemental pay - is monetary compensation given to the employee in addition to their regular base salary.

  (In addition to thier current salary)
• Severance pay - is the compensation and/or benefits an employer provides to an employee after employment is over.