In terms of labor costs, it is advantageous for a firm to tie added compensation to performance and maintain stable base pay rates.

Question

Quizplus · Accepted Answer

Tying added compensation to performance provides an incentive for employees to work harder and increase productivity, which can ultimately benefit the firm. Maintaining stable base pay rates ensures budget stability and prevents unexpected fluctuations in labor costs.

In Terms of Labor Costs, It Is Advantageous for a Firm