An empirical study on performance-based payment systems: A case study of economical and non-economical organizations

Abstract

In this paper, we propose an empirical survey between two groups of people who work for two types of governmental organizations asking them whether they prefer to receive their salaries based on their personal characteristics such as job experience, educational background and job performance. The results of our experience indicate that the people who participated in our survey mostly believe that the payment must be performed based on their performance and those who could contribute more must be entitled more in terms of their salaries. The preliminary results of our survey indicate that the payment system must be based on the level of education; work experiences and ob performance. In addition, the people who participate in our survey mostly believe that a transparent policy in payment system helps employees increase their motivation.

Keywords

• Performance-based payment
• Payment system
• Work experience
• Educational background