HBR Staff; Flavio Coelho/nonnie192/Getty Images
According to a recent Payscale report, more than 80% of companies currently use some form of variable pay to compensate their workers. From performance bonuses in sales and commission-based roles to tipped service jobs, demand-based scheduling in retail and construction, and algorithmically-priced gig work, a growing proportion of workers take home paychecks that vary substantially from week to week or month to month. Variable pay is also prevalent among professions often associated with a stable income including public school teachers, police officers, and medical doctors.
