Asked by Fallon Elise on Jun 19, 2024
Verified
Why might employees prefer base pay over performance pay?
A) Performance pay is more predictable.
B) Base pay is directly related to their performance level.
C) They dislike uncertainty about their compensation.
D) Market conditions are always changing.
Base Pay
The initial salary paid to an employee, not including benefits, bonuses, or other potential compensation.
Performance Pay
Compensation tied directly to an employee's performance or achievements, often used as an incentive to motivate higher productivity.
Uncertainty
A situation characterized by doubt or the inability to predict outcomes due to insufficient information or unpredictable variables.
- Recognize the determinants that affect the decision-making between base salary and incentive-based compensation.
Verified Answer
Learning Objectives
- Recognize the determinants that affect the decision-making between base salary and incentive-based compensation.
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