Performance Related Payment

Performance Related Payment schemes attempted to link

organizational reward system to employee performance . In
addition to this, Lazear (2000) argue that the reward system
must be designed to fulfil two separate objectives, hence it has
dual role. First, it must have incentive effect to work harder, as
it should increase opportunity costs of leisure on job, and it
should have selection effect. This effect would incentivize the
higher productivity workers to stay and low productivity
workers to quit.
 Apple rewards
• Health/Dental care.
• Various Insurances.
• 401K Matching.
• Paid Time Off.
• Employee Stock Purchase Plan.
• Discounts on products for you and for your friends/family.
• Free buses for commuting
Apple has the bonuses based on merits, performance bonuses, both for managerial staff and
other employees. According to Chaykowski (2012) company is offering to some employees in
retain raises up to 25% based on review on store operations earlier in the year. These raises
are usually done in the July and August and take effect on the employee salary next month.
Chaykowski (2012) argues that the employee that receives the 20% raise would get about 18
dollars per hour additional pay.
Apple believes especially in offering employee
rewards for independent thinking. The company
compensates its executives by giving them a
bonus of 3 to 5 percent of salary. Last year
according to media reports, Apple gave out
restricted stock units to a majority of its more than
100,000 employees