A Handbook of Human Resource Management Practice

(Tuis.) #1

Contingent pay


This chapter starts with a definition of contingent pay and details of its incidence. It
then deals with individual contingent pay under the following headings:


● contingent pay as a motivator;
● arguments for and against contingent pay;
● alternatives to contingent pay;
● criteria for success;
● performance-related pay;
● competence-related pay;
● contribution-related pay;
● skill-based pay;
● service-related pay;
● choice of scheme;
● readiness for contribution pay;
● developing and implementing contingent pay.


The chapter concludes with a description of team pay schemes and schemes that pay
for organizational performance. Incentives for sales staff and manual workers are
covered in Chapter 42.


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