The performance threshold in incentive pay programs is
A)the minimum level an employee must reach in order to qualify for fixed pay.
B)the minimum level an employee must reach in order to qualify for variable pay.
C)an organizational objective that signifies profitability.
D)a customized incentive plan which measures employee output and rewards exceptional employee performance.

Question

Quizplus · Accepted Answer

The performance threshold in incentive pay programs is the minimum level an employee must reach in order to qualify for variable pay. In other words, if an employee's performance falls below the threshold, they will not receive any additional pay beyond their fixed salary or base pay. The threshold is set as a way to ensure that employees are meeting certain performance standards before being rewarded with additional pay.

The Performance Threshold in Incentive Pay Programs Is