In terms of labor costs,it is advantageous for the company to keep base pay rates stable,and tie added compensation to performance.

Question

Quizplus · Accepted Answer

By tying added compensation to performance, the company can motivate employees to work harder and be more productive without incurring excessive labor costs from across-the-board pay raises. This approach also aligns with the concept of pay-for-performance, which is commonly used in modern compensation practices.

In Terms of Labor Costs,it Is Advantageous for the Company