Companies wanting to exert some behavioral control using incentives should make sure that the incentive component is between 15 and 30 percent of total compensation.

Question

Quizplus · Accepted Answer

Research has shown that incentives should ideally make up between 15 and 30 percent of total compensation in order to effectively influence behavior. Going above or below this range can result in diminished impact or other negative effects.

Companies Wanting to Exert Some Behavioral Control Using Incentives Should