randstad as partner for smart remuneration.
financial security as a foundation.
A competitive base salary provides employees with financial security and forms the basis of a strong remuneration policy. We help you build a fixed remuneration structure that aligns with the market and contributes to retention and engagement.
variable remuneration as a lever for performance.
Variable remuneration - such as bonuses, performance-based incentives, and profit-sharing plans - encourages employees to achieve goals and connect individual performance with your organisation's ambitions.
substantiated with market data.
Our salary surveys, benchmarks, and labour market insights give you the objective foundation to design remuneration structures that are market-aligned, transparent, and strategically substantiated.
the right balance.
Every organisation has a different context and different objectives. That is why our reward consultants design a balanced mix of fixed and variable remuneration that aligns with your business strategy, motivates your employees, and supports sustainable growth.
40+ years of reward expertise.
Our reward consultants support you in developing a future-proof remuneration model.
do you recognise these challenges?
- Do you struggle to find the right balance between financial security and performance-based reward?
- Are you wondering whether your fixed and variable remuneration still sufficiently meets employee expectations?
- Does your remuneration policy sufficiently align with your business goals and talent strategy?
- Are you using your payroll budget optimally to motivate and retain employees?
- Are your bonus and incentive plans clear, transparent, and focused on the right behaviour?
- Do you make pay decisions based on reliable market data and objective insights?
another challenge?
our reward consultants are happy to find the right solution.
we also support you with other challenges.
frequently asked questions about fixed and variable remuneration.
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what is fixed remuneration?
Fixed remuneration is the guaranteed, predictable portion of the compensation package — the base salary, supplemented by fixed pay components such as a 13th month or fixed allowances. This part of the pay policy is not fixed based on performance, but based on the role, responsibilities, and market-based remuneration. It forms the financial foundation employees can rely on, regardless of fluctuations in results.
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what is variable remuneration?
Variable remuneration is the portion of the compensation package linked to performance, results, or pre-agreed objectives — think of bonuses, incentives, commissions, or profit sharing. Unlike fixed remuneration, this amount is not guaranteed: it varies according to individual, team, or company results, acting as a direct lever for motivation and performance focus.
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why combine fixed and variable remuneration?
A pay policy relying solely on fixed salary lacks a direct link to performance; a pay policy primarily focusing on variable salary undermines employees' financial security. By combining both, you build a compensation structure that provides stability — crucial for retention and satisfaction — while stimulating motivation and engagement through performance-oriented incentives. This balance is a core principle of modern reward management.
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what forms of variable remuneration exist?
Variable remuneration comes in several forms, each with a different purpose: individual bonuses (linked to personal goals), team incentives (focused on collective results), profit sharing (linked to overall company performance), commissions (often in sales roles), and long-term incentives such as stock options. The right mix depends on the role, sector, and behaviour you wish to encourage as an organisation.
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how does an organisation determine the right ratio between fixed and variable pay?
There is no universal ratio between fixed and variable pay — the ideal balance depends on multiple factors: job level (the higher the level, the larger the variable portion typically is), sector and associated market practices, organisational goals, and the incentives you want to foster in employees. A salary benchmark study against the labour market and a well-thought-out reward policy are essential to determine a ratio that remains both competitive and affordable. Our reward consultants support organisations in designing this balance, tailored to their sector and ambitions.