Term paper (school) from 2014 in the field of Business Administration - Personnel and Organization, grade: 4.9 in Swiss grading system, language: German. Abstract: Today, there are hardly any companies that do not align salaries with employee performance. In large Swiss companies, this share was around 85 percent in 2005. In Switzerland, the majority of employed individuals work in the service sector. Due to the distance from the manufacturing sector, the results of work are often no longer physically visible and therefore often difficult to substantiate and compare. It is essential to make performance and work results objectively assessable. This allows for desired outcomes to be defined as goals in advance and communicated to the employee. This paper addresses variable performance compensation and the question of the extent to which the presumed effect occurs.