The incentives can take the form of cash payments, bonuses or commissions. In these companies, employees need to meet up with certain goals or targets in exchange for compensation. It is most commonly used by companies whose returns center around sales. In the business environment, quid pro quo is also referred to as incentive compensation. Experts have argued that quid pro quo may no longer be the best way of providing compensation to workers and there are several reasons why. While quid pro quo was formerly a popular system for measuring workplace performance, a lot of problems have arisen in recent times regarding its misuse as it relates to ethics in the workplace. In some cases, it also served as an incentive to push employees to work harder, especially since the compensation they get would be dependent on how well they can meet up with the business targets. Quid pro quo has been a common approach to workplace performance because it served as a metric for measuring employee improvement. In such organizations, employees are given incentives for completing certain targets. This approach is prevalent in organizations that are centered around individual performances in the workplace, especially those companies that operate with sales driven models. In the workplace, quid pro quo is a system where employees are paid based on their performance. Simply put, it is a business arrangement where one person exchanges their goods or services for another individual’s goods or services.Įven before the term became popular in the business world, human beings have been engaging in different forms of quid pro quo or “trade by batter.” Before the concept of money was invented, and even after, quid pro quo was used as a means to access desired goods and services in several parts of the world. Over the years, quid pro quo has been used to reference a business strategy where two parties are involved in a business agreement to exchange one product or service for another reciprocally. Quid Pro Quo is a legal latin business term that takes its origins from as far back as the European middle ages.

Quip pro quo