What is a key consideration when designing and implementing a pay-for-performance plan?
A) how to announce the pay-for-performance plan
B) what funds will be available for pay increases
C) which employees are to be part of the plan
D) how this plan will be perceived by competitors

Question

Quizplus · Accepted Answer

One key consideration is determining what funds will be available for pay increases. This will help ensure that the pay-for-performance plan is financially feasible and sustainable. Other factors, such as which employees are included in the plan and how it is communicated, are also important but may be secondary to the financial considerations. Perceptions of competitors may also be important in some industries, but this is not a universal consideration for all pay-for-performance plans.

What Is a Key Consideration When Designing and Implementing a Pay-For-Performance