The goal in giving pay increases to average performers should be
A) to keep their pay competitive with the labor market..
B) on motivating them to perform better.
C) on encouraging them to leave the organization.
D) on achieving a compa-ratio of 100.

Question

Quizplus · Accepted Answer

The goal in giving pay increases to average performers should be to keep their pay competitive with the labor market. This helps to prevent them from leaving the organization for better pay elsewhere, and also maintains fairness in compensation among employees. However, pay increases alone may not necessarily motivate average performers to improve their performance, so additional measures may be needed for that. Encouraging them to leave the organization is not a desirable goal for pay increases, and achieving a compa-ratio of 100 may not always be feasible or necessary.

The Goal in Giving Pay Increases to Average Performers Should