By linking employees' compensation directly to the company's financial performance, a business owner increases the likelihood that workers will achieve performance targets that are in their best interest and in the company's best interest.

Question

Quizplus · Accepted Answer

By linking compensation to financial performance, employees have a direct stake in the company's success and are motivated to work towards achieving the company's goals. This aligns employee interests with those of the company, resulting in a higher likelihood of achieving performance targets that benefit both parties.

By Linking Employees' Compensation Directly to the Company's Financial Performance