For short-term incentives,what does the term fund size refer to?
A) The specific amount that each employee will receive from productivity gains
B) The total amount of bonus money that will be available to be paid out
C) The percentage of the company's operating loss to be paid out
D) The specific base salary increases for each employee
E) The percentage of variable pay that will be available in the following year

Question

Quizplus · Accepted Answer

Fund size refers to the total amount of bonus money that will be available to be paid out as short-term incentives. It is important to set a realistic fund size to ensure that the organization can afford to pay out the bonuses and to motivate employees to achieve their performance targets.

For Short-Term Incentives,what Does the Term Fund Size Refer To