Advantages of an Incentive Pay Program
What are the advantages of an incentive pay program?
Which of the following is an advantage of an incentive pay program?
O Incentives focus employee efforts on high levels of salary compensation.
O Incentives shift attention from equity and justice to pay in an organization.
O Incentives are a way to distribute success among those not responsible for producing that success.
O Incentives are a means to reward or attract top performers when salary budgets are low.
Answer:
An advantage of an incentive pay program is that it focuses employee efforts on high levels of salary compensation and rewards or attracts top performers when salary budgets are low.
Explanation:
An advantage of an incentive pay program in organizations is that focuses employee efforts on high levels of salary compensation. By tying pay to performance, employees are motivated to work harder and achieve better results in order to earn higher incentives.
Incentive pay programs also reward or attract top performers when salary budgets are low. This allows organizations to retain and attract talented individuals by offering them the opportunity to earn more through their performance.
However, it is important to note that incentives should not shift attention from equity and justice to pay in an organization. Organizations should still strive to maintain a fair and just pay structure to ensure employee satisfaction and avoid potential issues.