Asked by Fallon Elise on Jun 19, 2024

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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.
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LE
Latoya EvansJun 24, 2024
Final Answer :
C
Explanation :
Employees may prefer base pay over performance pay because they dislike uncertainty about their compensation. With performance pay, employees may not know how much they will earn and may not know if their compensation will be affected by factors outside their control, such as changes in the market or company policies. Base pay, on the other hand, is generally more predictable and can provide employees with a sense of stability and security.