Performance increment is performance pay increment, which is actually what we call performance pay. It is a salary system based on effective assessment of employee performance, and its theoretical basis is "pay according to performance".

Enterprises use performance pay to regulate employees, thus encouraging employees' behavior. By adjusting the income of winners and losers, they encourage employees to pursue behaviors that meet the requirements of enterprises, stimulate the enthusiasm of each employee, and strive to achieve enterprise goals.

Compared with the traditional wage system, the main features of the performance-based wage system are:

First, it is conducive to linking employee compensation with quantifiable performance and integrating incentive mechanism into the relationship between enterprise goals and personal performance;

Second, it is conducive to the tilt of wages to outstanding performers, improving enterprise efficiency and saving wage costs;

Third, it is conducive to highlighting team spirit and corporate image, increasing incentives and employee cohesion.