Companies can control costs by replacing annual merit or seniority increases or fixed salaries with which type of plans?

Question

Quizplus · Accepted Answer

Incentive plans are designed to motivate employees to improve their performance and productivity, as they are rewarded based on their individual or team achievements. By implementing these plans, companies may be able to reduce their fixed costs and increase their return on investment. Longevity pay and pay-for-knowledge pay are also forms of fixed salary payments that may not align with individual performance or may not foster an environment of continuous improvement. Base pay is a term used to refer to the minimum salary or wage that employees are entitled to receive, and it does not include performance-based components or bonuses.

Companies Can Control Costs by Replacing Annual Merit or Seniority