What Is Project-Based Compensation

What is project-based compensation? Simply put, it's "earn as much as you deliver." Instead of passively waiting for a monthly salary, your income directly reflects every effort you make. Imagine no longer being an invisible cog in the machine, but the lead player on a project battlefield—completing a project feels like leveling up in a video game, with your pay rising accordingly!

This compensation model has surged in popularity recently—not just loved by employees, but also enthusiastically embraced by employers. Why? Because it tightly links “contribution” with “reward.” In the past, everyone shared the same pot: some worked late nights while others casually sipped coffee, yet all received the same paycheck at month-end—enough to make anyone want to flip a table. But project-based pay is different. Whoever takes on critical tasks, delivers on time, or leaves clients grinning from ear to ear—these contributions are all recorded and rewarded accordingly.

More importantly, it breaks the myth of “time equals value.” Sitting in the office longer doesn’t make you more valuable; results do. Finished a three-week task in just three days? Congratulations—your worth is instantly amplified. This is precisely why tech companies, creative teams, and freelance platforms are rapidly adopting this model—it’s transparent, fair, and highly motivating. Next, we’ll reveal how DingTalk uses its powerful features to accurately calculate project-based compensation, so you earn clearly and receive joyfully—no more being dragged down by averages!



DingTalk's Project Management Features

When it comes to project-based compensation, having the concept isn't enough—you need the right tool to clearly track "work done, money earned." That’s where DingTalk’s project management isn’t just a helper, but practically a launchpad to financial freedom!

Creating a new project in DingTalk is like setting up a temporary command center—you can define the project name, duration, team members, and even add custom tags so it stands out among dozens of other projects. Even better, task assignments no longer rely on casual requests like “Hey, can someone help me?” in a LINE group chat. Tasks are assigned precisely through the system, clearly stating who’s responsible for what and when it’s due—no room for excuses.

Progress tracking is next-level smart. Each task comes with a progress bar—click in, and you instantly see who’s stuck and who’s ahead of schedule. The Gantt chart view lets you oversee the entire project timeline like a film director. Crucially, these records aren’t just for reviews—they become the raw data for calculating project compensation. Every hour worked and every contribution made can be quantified.

Ditch those phone memos or Excel spreadsheets for tracking work—they’re asking for trouble. With DingTalk’s project management, every effort is visible, laying a fair and transparent foundation for compensation distribution.



How to Set Up Project-Based Compensation in DingTalk

Want your salary to shoot up like a rocket? The key lies in precise setup of project-based compensation! Setting this up in DingTalk isn’t about randomly entering numbers—it’s a strategic “numbers game.”

First, go to DingTalk’s project management page, open the project you’ve created, and enter the “Compensation Settings” feature. Don’t panic—it’s not a calculus exam! Based on the project type, you can customize payment rules—for example, paying by hours worked, by milestones achieved, or even adding a “quality bonus”—do great work, and bonuses will follow!

Next comes the highlight: allocating compensation ratios. Suppose a project has a total budget of 10,000 RMB, with frontend development taking 40%, backend 30%, testing 20%, and project management coordination 10%. In DingTalk, simply drag sliders or input percentages—the system automatically calculates each person’s share, saving you from calculator fatigue.

Better yet, once set, these rules can be reused across similar projects, saving time and minimizing errors. You’re not just setting up payments—you’re building an “automatic money-printing mode.” Ready? Next, let’s break down the logic behind these numbers!



How Project-Based Compensation Is Calculated

Project-based compensation may sound sophisticated, but it’s actually like ordering takeout—what you order, how much you eat, and delivery speed all affect the final bill. Calculating this in DingTalk isn’t about guessing numbers—it’s about precise accounting!

First, workload is the base. For example, completing 10 pages of design drafts at 500 RMB per page equals 5,000 RMB. But don’t celebrate yet—next comes time efficiency. If the deadline is one week but you finish in three days, the system might apply a 10% bonus multiplier. On the flip side, delays? Sorry, deduction mechanisms kick in immediately.

Even more crucial is quality scoring. Client satisfaction, supervisor evaluations, and number of revisions are all converted into coefficients. If your quality score is 90 out of 100, your final pay is multiplied by 0.9. So even if you rush to finish, but require endless client revisions, your paycheck still shrinks.

The full formula looks like this: Total Compensation = (Workload × Unit Price) × Time Coefficient × Quality Coefficient. Example: Xiao Li completes a website project valued at 8,000 RMB, finishes early earning a 1.1x time bonus, and scores 95 on quality. Final income = 8,000 × 1.1 × 0.95 = 8,360 RMB—more than expected, sweeter than unboxing a surprise blind bag!



Optimization Tips for Project-Based Compensation

Optimization and Recommendations for Project-Based Compensation: Practical tips to help companies and employees better leverage this model to boost productivity and satisfaction.

Clear calculation is just the first step. The real secret to making salaries soar lies in how you optimize this system. DingTalk may be a superhero teammate, but used poorly, it can turn into a liability. For instance, some teams break projects into pieces smaller than potato chips, forcing employees to spend their days logging hours instead of doing actual work—this isn’t compensation; it’s “clock-in hell!” We recommend setting reasonable project granularity—detailed enough for tracking, yet flexible enough to avoid micromanaging.

Another common issue is “results-only, no process.” High-quality outcomes require sufficient communication and feedback time. If speed is prioritized above all, you’ll end up with projects that look complete but are full of hidden flaws. DingTalk’s scoring system can include soft metrics like “collaboration attitude” and “innovative contribution,” ensuring compensation reflects true value more comprehensively.

Also, don’t forget to regularly review your compensation model! Markets change, projects evolve—why should your calculation logic stay unchanged for years? Hold a quarterly “compensation review meeting,” listen to employee feedback, adjust weightings, and keep the system evolving. After all, the best compensation system isn’t the most complex one, but the one that best motivates people.



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