Organizations that link extrinsic rewards to employee performance (i.e.that use incentive compensation plans) find that ________.
A) turnover of high performers decreases and turnover of low performers increases
B) turnover is increased across the board
C) turnover is decreased across the board
D) turnover rates are largely unaffected

Question

Quizplus · Accepted Answer

Organizations that link extrinsic rewards to employee performance often find that turnover of high performers decreases, as they are motivated by the potential to earn more through incentives. However, turnover of low performers may increase as they are not able to meet performance targets, leading to a sense of frustration and job dissatisfaction. Overall, the effect on turnover rates is mixed, but it is more likely to decrease among high performers.

Organizations That Link Extrinsic Rewards to Employee Performance (I