Variable compensation is defined as a portion of compensation that is determined by employee performance. Variable compensation is in addition to your base salary, which is the standard pay that you receive regardless of performance. While variable compensation may not be across all success roles, it is becoming more and more common so that your manager can drive the behavior which best supports the company goals. You might also hear variable comp called commission or a bonus. 

These two kinds of plans have different structures, but both are considered variable compensation.

Your end results and payout should not be a mystery to you. If your manager doesn’t provide one for you, build out a compensation calculator in excel or sheets where you can input your performance and calculate the outcome of all your hard work. Tying your variable compensation achievements to ta...