Incentive pay is also referred to as:
A) piecework rate.
B) market rate.
C) variable pay.
D) pay for performance.
E) both "variable pay" and "pay for performance."

Question

Quizplus · Accepted Answer

Incentive pay is a type of pay structure that is based on the performance of the employee or the company. It is also referred to as variable pay or pay for performance. Both option E ("variable pay" and "pay for performance") are correct as they are both used to describe the concept of incentive pay. Choice A ("piecework rate") is a type of incentive pay that is based on the number of units produced, while choice B ("market rate") refers to the prevailing wage in a particular industry or location and is not directly related to performance.

Incentive Pay Is Also Referred to As