Deferred compensation is an aspect of many employment contracts. For example, workers sometimes receive a bonus for staying with the firm for some specified period of time. In which of the following situations is deferred compensation likely to be a feature of the employment contract?
A)The firm incurs little cost when it hires a new worker.
B)It takes new workers a considerable time to learn the job.
C)The work is routine and involves no learning on the job.
D)The work is extremely distasteful.

Question

Quizplus · Accepted Answer

In situations where it takes new workers a considerable time to learn the job, the firm may offer deferred compensation as an incentive for employees to stay with the company and continue to improve their skills and knowledge. This helps the firm to retain valuable employees and reduce turnover costs.

Deferred Compensation Is an Aspect of Many Employment Contracts