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Paying staff every month based on their performance for that month: What do you think of it?

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Some businesses are adopting the model where staff are being paid based on their performance. That means the staff has no fixed salary. They can earn so high and can possibly earn so low. What do you think of this kind of payment model for business organization?
 
It will be a very good business model but how can you access and quantify their performance? If there is a way to quantify, it will be a nice way to pay workers! At least, it will balance the worker-employer salary challenges!
 
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