The best variable pay plan for employees when company financial performance is poor is _____.

Question

Quizplus · Accepted Answer

Gain sharing is the best variable pay plan for employees when company financial performance is poor because it rewards employees for finding ways to improve productivity and reduce costs. This can help the company improve its financial performance even during tough times. Profit sharing and stock ownership plans may not be as effective in poor financial performance because there may not be any profits to share or the value of the stock may be low. A balanced scorecard can be effective in measuring performance, but it may not provide the necessary motivation for employees during tough times.

The Best Variable Pay Plan for Employees When Company Financial