According to the efficiency wage theory,being a higher-pay employer is more beneficial when organizations:
A)can easily monitor employee performance.
B)are centralized.
C)require highly skilled employees.
D)have specialized work structures.

Question

Quizplus · Accepted Answer

The efficiency wage theory suggests that higher wages can increase employee productivity and reduce turnover, ultimately leading to cost savings for the organization. This is particularly true when the organization requires highly skilled employees who are difficult to replace or train, so offering higher wages can help attract and retain the best talent. Simply being able to monitor performance, being centralized, or having specialized work structures may not necessarily mean that higher pay is more beneficial.

According to the Efficiency Wage Theory,being a Higher-Pay Employer Is