What term describes a form of financial compensation linked to employee performance?

The term that describes a form of financial compensation linked to employee performance is "Bonuses/Incentives." This form of compensation is designed to motivate employees to achieve specific performance targets or goals. Bonuses are typically awarded based on an individual's performance, team accomplishments, or company-wide success, thereby encouraging employees to excel in their roles.

This compensation structure is often seen in sales positions, where employees may receive commissions based on the sales they generate. However, bonuses can apply to various roles and performance metrics, such as achieving quarterly goals or completing projects ahead of schedule.

In contrast, salary refers to the regular compensation received, usually described as an annual amount that does not change based on performance. Overtime pay compensates employees for hours worked beyond their standard work schedule, regardless of their performance level. While all forms of compensation are essential in the workplace, "Bonuses/Incentives" specifically tie financial rewards to employee performance, making it the most fitting answer for this question.