One drawback of deferred payments is that
A)employees may shirk anyway.
B)employers might fire high achievers to avoid paying higher wages or bonuses.
C)it is difficult to determine who are the good and who are the bad workers.
D)employees have to work for the firm for a long time.

Question

Quizplus · Accepted Answer

Employers might fire high achievers to avoid paying higher wages or bonuses, which is a potential drawback of deferred payments as it allows employers to avoid the additional costs associated with rewarding high performance.

One Drawback of Deferred Payments Is That