Final answer:
In sales positions, employees are paid based on their sales through a system called commissions. Unlike bonuses, commissions are specifically tied to the amount of sales generated by the employee.
Step-by-step explanation:
In sales positions, incentive programs that pay employees based on the level of sales they make within a given time frame are known as commissions. These are a type of incentive program where salespeople earn a percentage of the sales they generate, encouraging them to sell more. In contrast to bonuses, which tend to be discretionary rewards paid by an employer for good performance, commissions are strictly tied to the actual sales made. Other systems like gain sharing and profit sharing distribute profits and earnings among employees, which can improve productivity since employees benefit directly from the success of the business. However, pay for performance programs, which can include piece-rate systems, pay employees for meeting certain performance criteria, not necessarily just sales.