Which of the following is an important reason why employers use piece rate systems in their compensation strategy?

A) It is difficult to predict labour costs accurately.
B) It helps with desired team behaviours.
C) Piece rates are simple to compute.
D) Piece rates promote team work.

Piece Rate Systems

Payment methods based on the quantity of items a worker produces or completes, incentivizing productivity.

Compensation Strategy

An organization's plan for determining the pay and benefits package provided to employees in exchange for their work.

Labour Costs

The total expenses associated with employing labor, including wages, benefits, payroll taxes, and other related costs.