Under her employer's incentive pay system, Vicky's team sells the most real estate and wins a trip to Hawaii. Which is one negative consequence for Vicky and her team?
A) The incentive does not become part of their base compensation.
B) There is a letdown in morale following the trip.
C) Employees do not value nonfinancial compensation.
D) It is difficult for team members to decide each individual's contribution to the outcomes.
E) Vicky and her team know it is unlikely they will win a second time, reducing motivation.

Question

Quizplus · Accepted Answer

The negative consequence for Vicky and her team is that the incentive does not become part of their base compensation. This means that they will not receive the incentive again unless they perform at the same level in the next incentive period. As a result, this may reduce their motivation and lead to decreased productivity.

Under Her Employer's Incentive Pay System, Vicky's Team Sells the Most