Which part of a pay plan is designed to motivate employees?
A) Benefits
B) Base pay
C) Shift and location adjustments
D) Variable pay

Question

Quizplus · Accepted Answer

Variable pay, also known as incentive pay, is designed to motivate employees by rewarding them for their performance, productivity, and achievements. It provides a direct link between employees' effort and their pay, which motivates them to work harder and achieve better results. This type of pay plan is commonly used to incentivize sales teams, where a commission is earned based on the amount of sales made.

Which Part of a Pay Plan Is Designed to Motivate