Which type of compensation increases an employee's base pay and contributes to cost control over time??
A) merit pay
B) incentive pay
C) person-focused pay
D) seniority-based pay

Question

Quizplus · Accepted Answer

B)Incentive pay rewards employees for partially or completely attaining a predetermined work objective.Incentive or variable pay is defined as compensation-other than base wages or salaries-that fluctuates according to employees' attainment of some standard,such as a pre-established formula,individual or group goals,or company earnings.Much like seniority and merit pay approaches,incentive pay augments employees' base pay,but incentive pay appears as one-time payments.

Which Type of Compensation Increases an Employee's Base Pay and Contributes