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WHAT IS A production pay model?

Updated: 10/23/2022
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14y ago

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Production Pay is a compensation strategy whereby employees are compensated, either wholly or in part, based on their production -- or less literally, employees earn remuneration based on how much of their organization's products they make/sell/etc.

A common example is what is known as a "commission" -- or a percentage of the employee's sales. This model is often seen for stock brokers and retail clerks, among others.

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