Which pay strategy is NOT a form of incentive compensation?
A) Bonus system
B) Hourly wage
C) Gain sharing
D) Profit sharing
E) All of the above are forms of incentive compensation.

Question

Quizplus · Accepted Answer

Hourly wage is not a form of incentive compensation because it is a fixed rate of pay for every hour worked regardless of individual or team performance. Incentive compensation, on the other hand, is designed to motivate employees to achieve certain goals or objectives and reward them for their contributions to the organization's success. Bonus system, gain sharing, and profit sharing are all forms of incentive compensation as they provide additional compensation based on individual or team performance.

Which Pay Strategy Is NOT a Form of Incentive Compensation