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[Guide] Successful Variable Compensation

It is important to compensate employees in a fair and incentivizing way. You also need to maintain an overall healthy business model, which means compensation needs to be fair to both your employees and your business. 


There are many components to a compensation package such as guaranteed pay, variable pay, benefits, and equity. In this guide, we are going to focus on one that often feels the most difficult: variable pay. 

Why is compensation important to consider? Compensation has a significant impact on many aspects of your organization.

For example, compensation affects:

  • Employee concept of their worth to the company
  • Employee behavior
  • Employee motivation
  • Employee morale
  • Company culture

A quality variable compensation program can:

  • motivate employees to achieve beyond projection.
  • build trust within your organization.
  • contribute to an overall healthy company culture.
  • improve progress toward company goals.

On the other hand, if variable compensation is structured poorly, it can have adverse effects. A confusing or messy plan can:

  • create negative morale.
  • inspire low performance.
  • increase turnover.
  • cause delays in progress toward company goals.

You want your employees to buy into your organization’s vision and understand how their individual contribution plays a role in your company’s overall success.

You want to encourage positive behavior and maximize output in a way that benefits your employees and your business.

You want to build a healthy company culture that motivates hard work and rewards extra-mile effort.

When done correctly, variable pay is a great tool to help accomplish these goals.

From our extensive experience assessing and improving compensation structures for transportation and logistics companies, variable compensation is topic we understand well. Our guide shares four tips to create a successful variable compensation strategy.

Learn more about how to tackle this complicated incentive with our guide. Fill out the form below to access: 



Adam Perlmutter
Adam Perlmutter
Adam is an Industry Consultant / Subject Matter Expert at CarrierDirect. He specializes in Truckload Brokerage and Logistics. Prior to joining the team, Adam learned the ropes in Carrier Sales at AFN and went on to help build Carrier Sales departments at Echo Global Logistics, Uber Freight and co-founded Deploy Solutions Group. His experience gives unique perspectives in team building, operational efficiency and customer experience.

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