Incentives need to be clearly separated from base pay to avoid creating the impression that incentives are a(n)______.
A) merit payment
B) bonus
C) commission
D) entitlement

Question

Quizplus · Accepted Answer

Separating incentives from base pay helps avoid the perception that incentives are an entitlement, meaning something that employees are owed simply for doing their job. This can lead to dissatisfaction and lowered motivation if incentives are not earned through exceptional performance. Therefore, it is important to clearly communicate that incentives are not a guaranteed part of compensation. While options A, B, and C also describe different types of incentives, they do not provide a rationale for why it is important to separate them from base pay.

Incentives Need to Be Clearly Separated from Base Pay to Avoid