A rich compensation mix encompasses much more than base pay alone, there are bonuses, incentives, benefits and much more to consider. Together, all these pay elements create a total rewards package for employees.
However, variable pay can also be a powerful manifestation of company culture. For example, why not offer spot bonuses for individuals who show strong examples of the company’s core values? If an organization prioritizes collaboration, why not give a bonus to the individual who stayed late helping a coworker finish a project? If risk-taking is a core tenant, an employer could turn heads by rewarding a failed project, simply because an individual was bold enough to try something new.