Asked by Karmel Abdeljalil on Jul 05, 2024

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Research on financial incentives and pay-for-performance plans have found that they

A) increase performance but have no effect on turnover.
B) increase performance and lower turnover.
C) lower performance and lower turnover.
D) lower performance and increase turnover.
E) have no effect on performance or turnover.

Financial Incentives

Monetary or fiscal rewards given to employees or teams to motivate performance and achieve desired outcomes.

Pay-for-Performance Plans

Compensation strategies where employees' pay is based on their performance or achievements.

Performance

The execution and completion of tasks and the accomplishment of goals in a given timeframe, often evaluated against a set of standards.

  • Understand the effects of financial rewards and merit pay on the rate of employee departure and work outcome.
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TA
Taylor AllenJul 12, 2024
Final Answer :
B
Explanation :
Research indicates that financial incentives and pay-for-performance plans can increase employee performance and also lower turnover by enhancing job satisfaction and loyalty.