Given changes in financial circumstances of an organization, senior management requests recommendations geared towards containing compensation costs. Which of the following would NOT be a recommendation that you would bring forward?
A) Enact a hiring freeze.
B) Contain benefit costs.
C) Replace some raises with bonuses.
D) Replace variable pay with fixed pay.

Question

Quizplus · Accepted Answer

This recommendation does not align with containing compensation costs as variable pay is typically more cost-effective than fixed pay. Therefore, this option would increase compensation costs. The other options (A, B, and C) are all viable suggestions for containing compensation costs.

Given Changes in Financial Circumstances of an Organization, Senior Management