Incorporating variable pay within an employees costs sounds like a good deal. Work harder and get paid more based on performance.

But it hardly ever is in practice. Although presented as a reward for outstanding performance, one may find it unattainable and impractical due to lofty objectives or ambiguous conditions (which let's be honest often changes in a whim usually for the employers benefit).

Variable pay hurts both the employee and the employer. For starters the employee is obviously getting scammed into working harder and longer. Meanwhike the employer thinks they're making a profit but in reality they are losing employee trust and there's a good chance many are not going to stick around.

Saying this from my years of hr experience. Don't touch variable pay with foot long stick.