Objectives: "Performance-based payment" is a management tool in optimizing employee pay based on measuring the quality of their performance. The purpose of this study is to identify the types and benefits of each of the performance-based payment methods compared to each other and to get acquainted with the prerequisites for implementing this system in an organization.Methods: In this study, the science direct and emerald Insight websites in October 2019 were reviewed using the mobile browsing method. Narrative review is one of the well-known methods for identifying, selecting and analyzing secondary data and understanding the vacuum of past research.Results: Performance-based payments are made in both individual and group formats. Merit and Bonus are two common types of individual payments. In a group payment system, payments based on group results obtained for a common purpose are awarded to individuals in a group. The different types of group payments include "pay to the management team", "main stock option", "employee ownership of shares", "profit sharing", "profit sharing" and "team payment to employees". Prerequisites for implementing this system in an organization include "organizational culture", "supervisor training", "funding", "appropriate timing for implementation" and "performance appraisal and rating system". After the implementation of the system, performance indicators should be regularly monitored and updated.
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