AIHR

OCTOBER 12, 2022

Variable compensation can be a useful tool for rewarding employees’ performance to provide measurable results for your business. Let’s dive into all you need to know about variable compensation. Contents What is variable compensation? What is variable compensation? Examples of variable compensation.

Compensation 130

Compensation Metrics Benefits Benchmarking 130

Chief Executive

DECEMBER 20, 2022

As a result, organizations have increased their base salaries in recognition of a robust and competitive talent market, but salary increases are lower than inflation rates because of the prospect of a softening economy, and some organizations are also reducing or planning to reduce total staff to manage costs.

Compensation 97

Compensation Variable Costs Retention Fixed Costs 97

Harvard Business Review

JULY 2, 2014

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. It’s a simple calculation to determine how many units must be sold at a given price to cover one’s fixed costs. Assume she must incur a fixed cost of $25,500 to produce and sell a kite.

Variable Costs 18

Variable Costs Fixed Costs Sales Sales 18

Harvard Business Review

OCTOBER 13, 2017

Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds costs. “Contribution margin shows you the aggregate amount of revenue available after variable costs to cover fixed expenses and provide profit to the company,” Knight says. How do you calculate it?

Variable Costs 15

Variable Costs Fixed Costs Revenue Sales 15

Harvard Business Review

DECEMBER 21, 2011

Even sacred and often arcane areas of HR such as executive compensation are now largely guided by outsourced providers who are experts in current tax and SEC regulations. Within the first year of our effort net sales increased 27 percent while fixed costs were reduced by 40 percent.

Fixed Costs 16

Fixed Costs Staffing Sales Sales 16

Harvard Business Review

OCTOBER 29, 2015

This makes financial sense in industries with high fixed costs and low variable costs: larger sizes enable the company to charge higher prices that, even if they are just slightly larger, absorb a higher portion of fixed costs, while reducing packaging cost per volume and attracting value-minded consumers.

Fixed Costs 14

Fixed Costs Variable Costs Marketing Sales 14

Harvard Business Review

JULY 2, 2014

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. It’s a simple calculation to determine how many units must be sold at a given price to cover one’s fixed costs. Assume she must incur a fixed cost of $25,500 to produce and sell a kite.

Variable Costs 10

Variable Costs Fixed Costs Sales Sales 10