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Performance-based rewards

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Ideas for linking performance to rewards and why this can be important for staff development.

Rewards can play an important role in motivating employees. The theory is that employees will be motivated to undertake a task if they think a particular reward will be forthcoming.

Examples of performance-based reward

  • Pay. Procedures for reviewing salaries is explored in more depth on Knowhow's page about producing a staff handbook
  • Bonuses. Creating an equitable system for bonuses and rewards is explored in treating people equally
  • Working on special projects or tasks. Read more about staff development. 
  • Working with a particular colleague or team. The importance of working with people we like is examined on our page about building a loyal workforce
  • Travelling (or not) for business.
  • Promotion. Read more about how promotion and succession planning can motivate a team
  • Secondment to another area.
  • Attending a course, seminar or exhibition. 

Linking staff performance to organisation performance

To consider how performance-based rewards are linked to the performance of the organisation read Knowhow on evaluating the performance of the organisation.


Victor Vroom's theories on improving workplace satisfaction and performance are examined in a number of books and articles including Work and Motivation.

Page last edited Sep 08, 2020

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