Which of the following is an objective of variable pay?
A) to help retain long-service employees
B) to help link individual performance to individual pay
C) to help promote cost savings initiatives by employees
D) to help keep labour costs down

Question

Quizplus · Accepted Answer

The objective of variable pay is to link individual performance to individual pay, which encourages and incentivizes employees to perform better and contribute towards achieving organizational goals.

Answer A is incorrect because retaining long-service employees is not the primary objective of variable pay.
Answer C is incorrect because promoting cost savings initiatives by employees can be achieved through other means such as suggestion schemes, and it is not a primary objective of variable pay.
Answer D is incorrect because the primary objective of variable pay is not to keep labor costs down, but rather to align individual efforts with organizational goals.

Which of the Following Is an Objective of Variable Pay