A pay plan's ability to draw highly qualified applicants for jobs at a particular organization is known as the incentive effect.

Name: A pay plan's ability to draw highly qualified applicants for jobs at a particular organization is known as the incentive effect.
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The ability of a pay plan to attract highly qualified applicants is known as its attraction effect, not the incentive effect. The incentive effect refers to how well the pay plan motivates current employees to perform.

A Pay Plan's Ability to Draw Highly Qualified Applicants for Jobs