Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright

Exercise 27

Employers Stress Merit Pay to Retain Workers
A majority of companies consider employee retention to be a major concern, according to a survey by PayScale, a specialist in compensation data and software. The way companies are using compensation to attract and retain high-performing employees is with merit-based pay.
Fewer are relying on bonuses (discretionary or nondiscretionary incentives) or grants of stock or stock options. Beside compensation, about one-third of companies said they are relying on training and development to attract and keep talent.
Compensation Plans for Attracting and Keeping Talent

If your goal is to keep and engage high-performing employees, would you expect incentive pay to be more effective than simply increasing pay equally for all workers Why or why not