Katie owns a catering company where employees work both in preparing the food as well as serving at the events.What would be the best compensation system?
A)time-based
B)profit-sharing plan
C)piece rate
D)commission

Question

Quizplus · Accepted Answer

A profit-sharing plan would incentivize employees to work efficiently and prioritize customer satisfaction since the success of the company's events directly affects their compensation. This system also provides a sense of ownership and commitment to the company's goals, creating a team-oriented work environment. Time-based compensation may not accurately reflect the work employees put in, while piece rate and commission systems may not be suitable for catering services where the workload varies from event to event.

Katie Owns a Catering Company Where Employees Work Both in Preparing