With incentive pay, there is substantial downside risk for employees and there is less upside potential.

Question

Quizplus · Accepted Answer

With incentive pay, there is typically more upside potential for employees as they can earn additional compensation based on meeting or exceeding performance goals. However, there is also potential downside risk if the employee does not meet performance expectations and may not receive the full incentive payout.

With Incentive Pay, There Is Substantial Downside Risk for Employees