The economic analysis of incentives focuses on the systems that dictate the incentives needed for an agent to achieve a desired outcome. When a firm wants their employees to produce a certain amount of output, it must be prepared a offer a compensation scheme such as a monetary bonus to influence the employees to reach the target output. Compensation must achieve two goals. The first is its ability to attract workers to the jobs and be able to retain them. The second is its ability to incentives workers to produce an output as workers who do not produce do not generate any profit for the firm. A rise in pay variance across occupations reflects an increased demand for highly productive workers thus, influencing compensation to shift towards pay-for-performance. Firms use a variety of methods to implement productive behavior. Some methods are commission based where the employee, for examples a salesperson receives a payment directly correlated to their output level. Other methods are less direct, for example awarding periodic bonuses to top performers, offering a possibility of a promotion to higher-paying position or profit sharing for team projects. Alternatively, firms can also incentives their employees to perform by threatening to demote or terminate them.