An insurance company owns and operates an office building downtown. The company employs its own staff to perform tasks including building cleaning and maintenance. This organization also operates its insurance business unit from within that building. Management is evaluating the type of compensation offered to individuals with various roles within the company. Which of the following would be the most appropriate type of compensation for the janitorial staff who are utilized to clean and maintain the building?
A) Commission
B) Hourly wage
C) Piece rate
D) Salary

Question

Quizplus · Accepted Answer

This question requires familiarity with the various types of compensation available to companies to utilize for their employees and the appropriate use of each type. In the case of the janitorial staff, Choice B is the correct choice. Hourly wages are the most appropriate for positions requiring fewer skills with an option for overtime pay if hours worked exceed a set limit. The remaining three choices would not be appropriate choices for janitorial staff.

An Insurance Company Owns and Operates an Office Building Downtown