What is a disadvantage of a pay structure that rewards employees for winning promotions?
A) It does not focus on setting pay for groups of jobs.
B) It does not make adjustments to a pay rate to reflect differences in labor markets.
C) It discourages employees from gaining valuable experience through lateral career moves.
D) It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills.
E) It places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs.

Question

Quizplus · Accepted Answer

Rewarding employees only for winning promotions can discourage them from taking on lateral moves or seeking out opportunities to gain valuable experience in different roles. This can stifle development and growth and limit the pool of well-rounded and capable employees.

What Is a Disadvantage of a Pay Structure That Rewards