payment by results: meaning, definition, pronunciation and examples
C1-C2 / Low-frequency specialist termFormal, Business/Management, Academic (Economics, Public Policy), Technical
Quick answer
What does “payment by results” mean?
A system of remuneration where the amount paid is directly linked to the outcomes or performance achieved, rather than time spent or fixed rates.
Audio
Pronunciation
Definition
Meaning and Definition
A system of remuneration where the amount paid is directly linked to the outcomes or performance achieved, rather than time spent or fixed rates.
A performance-based compensation model prevalent in management, sales, education (e.g., teacher bonuses linked to student exam results), and public sector funding, often tied to measurable targets or key performance indicators (KPIs).
Dialectal Variation
British vs American Usage
Differences
More historically established in UK public sector and management discourse (e.g., NHS, education). In the US, equivalent terms like 'performance-based pay' or 'pay for performance' are more common, though 'payment by results' is understood.
Connotations
UK: Strong association with New Public Management reforms, outsourcing (e.g., welfare-to-work programmes). US: Often associated with corporate sales commissions and executive bonus structures.
Frequency
Higher frequency in UK policy and business journals; in US, 'pay-for-performance' is the dominant collocation.
Grammar
How to Use “payment by results” in a Sentence
[Organization] + introduced + payment by results + for + [group][Scheme] + operates + on + a + payment by results + basis[Funding] + is + tied to + payment by resultsVocabulary
Collocations
Examples
Examples of “payment by results” in a Sentence
noun
British English
- The new welfare-to-work programme is funded by payment by results.
- Payment by results has been controversial in the probation service.
American English
- The consulting firm proposed a payment-by-results model for the project.
- He advocates for payment by results in government contracting.
Usage
Meaning in Context
Business
Our sales team is on a pure payment by results scheme, with no base salary.
Academic
The study found that payment by results in healthcare can lead to cherry-picking of less complex cases.
Everyday
I prefer a job with a steady wage rather than payment by results—it's less stressful.
Technical
The Payment by Results (PbR) tariff system for NHS hospitals links reimbursement to Healthcare Resource Groups (HRGs).
Vocabulary
Synonyms of “payment by results”
Strong
Neutral
Weak
Vocabulary
Antonyms of “payment by results”
Watch out
Common Mistakes When Using “payment by results”
- Using 'payment for results' (less idiomatic).
- Using as a plural countable noun ('payments by results'). It is typically an uncountable compound noun.
- Confusing with 'payment on delivery', which is specific to goods received, not abstract results.
FAQ
Frequently Asked Questions
Commission is a specific type of payment by results, typically for sales. 'Payment by results' is a broader term covering any compensation tied to outcomes, including in public services, education, or project delivery.
It can lead to 'gaming' the system, where agents focus only on measured results at the expense of quality, unmeasured outcomes, or ethical behaviour (e.g., neglecting hard-to-help clients).
Yes, it's common in team-based bonus schemes or when funding organisations (e.g., charities, service providers) based on collective outcomes achieved.
When used as a compound modifier before a noun, it is often hyphenated (e.g., 'a payment-by-results scheme'). As a standalone noun phrase, it is usually not hyphenated.
A system of remuneration where the amount paid is directly linked to the outcomes or performance achieved, rather than time spent or fixed rates.
Payment by results is usually formal, business/management, academic (economics, public policy), technical in register.
Payment by results: in British English it is pronounced /ˈpeɪmənt baɪ rɪˈzʌlts/, and in American English it is pronounced /ˈpeɪmənt baɪ rɪˈzʌlts/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “What gets measured gets paid for.”
- “Putting your money where your metrics are.”
Learning
Memory Aids
Mnemonic
Imagine a farmer who only gets PAID when his crops (RESULTS) are successfully harvested and sold. No harvest, no payment. That's PAYMENT BY RESULTS.
Conceptual Metaphor
COMPENSATION IS A CONSEQUENCE (Payment is metaphorically framed as the direct and inevitable effect of a result, like a shadow following an object).
Practice
Quiz
In which sector is 'payment by results' LEAST commonly discussed?