Which of the following is the most common compensation practice among small firms?
A) Paying below-market rates to technical workers
B) Offering stock options instead of base salaries
C) Paying bonuses based on company performance
D) Offering sign-on bonuses to attractive recruits

Question

Quizplus · Accepted Answer

Paying bonuses based on company performance is the most common compensation practice among small firms. This approach aligns the interest of employees with the success of the company and can motivate employees to work harder to achieve company goals. Paying below-market rates to technical workers and offering sign-on bonuses are less common in small firms. Offering stock options may also be less common as small firms may not have the resources to administer stock option plans.

Which of the Following Is the Most Common Compensation Practice