Escalator clauses in employee contracts may actually reduce motivation for employees to improve performance because
A)the raises are not high enough to be meaningful.
B)too many conditions must be met to receive raises.
C)employees have to work too many hours.
D)pay is unrelated to individual performance.

Question

Quizplus · Accepted Answer

Escalator clauses typically tie pay increases to factors such as cost of living or industry standards, rather than individual performance. This can create a sense of complacency among employees who know they will receive a raise regardless of how well they perform their job. As a result, employees may not be as motivated to improve their performance.

Escalator Clauses in Employee Contracts May Actually Reduce Motivation for Employees