Output-based systems compensate employees according to the amount of output they produce, thereby tying pay directly to performance.

Name: Output-based systems compensate employees according to the amount of output they produce, thereby tying pay directly to performance.
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Output-based systems, also known as pay-for-performance systems, directly link compensation to the amount of work or output produced by an employee, incentivizing higher performance and productivity.

Output-Based Systems Compensate Employees According to the Amount of Output