Performance-based pay is more popular than time-based pay among most employers in the U.S.

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Time-based pay is still the foundation of most employers' pay plans. Blue-collar workers get hourly or daily wages, for instance, and others, like managers, tend to be salaried and paid by the week, month, or year. The second direct payment option is to pay for performance, which ties compensation to the amount of production the worker turns out.

Performance-Based Pay Is More Popular Than Time-Based Pay Among Most