The level of risk associated with an incentive program will impact how the employees view the incentive based on the history of the organization.

Question

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If an organization has a history of not following through on incentives or of changing the rules mid-program, employees may view the incentive as less trustworthy and be less motivated to participate. On the other hand, if an organization has a track record of fair and consistent incentive programs, employees are more likely to view the incentive as a worthwhile opportunity and be motivated to participate. Therefore, the level of risk associated with an incentive program can impact how employees perceive and respond to it based on the history of the organization.

The Level of Risk Associated with an Incentive Program Will