In which compensation system do companies share the financial value of performance gains,such as productivity,cost savings,or quality,with their workers?
A)skill-based pay
B)gainsharing
C)a draw account
D)profit sharing

Question

In which compensation system do companies share the financial value of performance gains,such as productivity,cost savings,or quality,with their workers?
A)skill-based pay  
B)gainsharing  
C)a draw account  
D)profit sharing

Quizplus · Accepted Answer

Gainsharing is a compensation system in which companies share the financial value of performance gains, such as productivity, cost savings, or quality, with their workers. This promotes a sense of ownership and motivation among employees to work towards common goals and strive for improved performance. Skill-based pay (A) is a system that rewards employees based on their individual skills and knowledge. A draw account (C) is a method of paying sales employees that allows them to withdraw a salary advance based on expected commissions. Profit sharing (D) is a system in which employees receive a portion of the company's profits, which may or may not be tied to performance gains.

In Which Compensation System Do Companies Share the Financial Value