Wage flexibility and incentive plans are made easier when organizations have standardized wages tied to jobs and independent of a company's ability to pay.

Wage Flexibility

The ability of wages to adjust in response to changes in the economy, such as supply and demand for labor.

Incentive Plans

Reward systems designed to motivate employees by tying a portion of their earnings to their performance or achievement of targets.

Standardized Wages

A policy or practice aimed at ensuring employees performing similar tasks with similar experience levels are paid equally.