Which of the following statements about employee turnover is true?
A)For top management, dysfunctional turnover is preferable to functional turnover.
B)One of the best ways to discourage turnover is to link pay directly to performance.
C)Employee turnover is the loss of employees who involuntarily choose to leave a company.
D)All functional turnover requires outplacement centers.
E)Sales commissions and bonuses should not be used to decrease functional turnover.

Question

Quizplus · Accepted Answer

Linking pay directly to performance is a commonly used strategy for reducing employee turnover, as it incentivizes employees to remain with the company in order to earn higher compensation. A is incorrect, as dysfunctional turnover (the loss of employees who voluntarily choose to leave) is typically more costly and disruptive than functional turnover (the loss of employees who are not performing well). C is incorrect, as employee turnover can also refer to employees who voluntarily choose to leave a company. D is incorrect, as not all functional turnover requires outplacement centers. E is incorrect, as sales commissions and bonuses can be effective incentives for retaining high-performing employees.

Which of the Following Statements About Employee Turnover Is True