Which is not true regarding a delayed-compensation contract?
A) It discourages workers from shirking.
B) It decreases employee turnover within the firm.
C) An effective one requires a mandatory retirement age.
D) It necessarily costs more in labor costs than a time rate system.
E) It is associated with an upward-sloping age-earnings profile.

Question

Quizplus · Accepted Answer

Delayed-compensation contracts do not necessarily cost more in labor costs than a time rate system. These contracts often start with lower pay that increases over time, potentially aligning overall costs with those of time rate systems while offering incentives for long-term employment and reducing shirking.

Which Is Not True Regarding a Delayed-Compensation Contract