Asked by Monikka Ramkissoon on Jul 25, 2024
Verified
Identify a true statement regarding the efficiency wage theory.
A) Organizations that spend more money on employee benefits experience high employee turnover.
B) Organizations unwilling to spend on benefits successfully convince employees to work harder than before.
C) Organizations willing to spend more money on total compensation attract better-qualified people.
D) Organizations do not see any impact of social, cultural, and political forces on their benefits programs.
Efficiency Wage Theory
An economic theory suggesting that higher wages can increase productivity by attracting better talent, reducing turnover, and motivating employees.
Total Compensation
The complete package of salary, benefits, bonuses, and any other form of remuneration given to an employee.
- Recognize the impact of compensation strategies on organizational efficiency and employee turnover.
Verified Answer
GG
Grace GardnerJul 31, 2024
Final Answer :
C
Explanation :
Efficiency wage theory suggests that higher wages can lead to increased productivity by attracting more qualified candidates and increasing worker effort and loyalty, thereby reducing turnover and enhancing the quality of the workforce.
Learning Objectives
- Recognize the impact of compensation strategies on organizational efficiency and employee turnover.