Which of the following is a negative aspect of straight-salary sales compensation plans?
A) Increase in employee turnover
B) Increase of fixed compensation costs
C) Complicated to design and administer
D) Reduced motivation to spend time with customers

Question

Quizplus · Accepted Answer

Straight-salary sales compensation plans increase fixed compensation costs, which may lead to financial strain on the company in periods of reduced sales or economic downturns. A is incorrect because straight-salary plans often lead to lower employee turnover rates. C is incorrect because straight-salary plans are generally simpler to design and administer compared to other sales compensation plans. D is incorrect because straight-salary plans may motivate employees to spend more time with customers since they are not driven solely by commissions.

Which of the Following Is a Negative Aspect of Straight-Salary