Flexibility has been cited as both an advantage and a disadvantage of this compensation pay plan:
A) straight salary.
B) combination pay plans.
C) straight commission.
D) straight commission with bonuses.
E) straight salary with bonuses.

Question

Quizplus · Accepted Answer

Combination pay plans offer both a fixed salary and variable pay based on performance, providing flexibility to employers and employees. This pay plan enables employees to earn more when they perform exceptionally well, while employers can adjust the variable pay component based on business needs. However, it can also be a disadvantage as employees may focus too much on earning bonuses, potentially sacrificing other important aspects of their job, such as customer service or long-term strategic goals.

Flexibility Has Been Cited as Both an Advantage and a Disadvantage