What will most likely result from determining wage increases solely on the basis of the CPI?
A)employees will be motivated in the short run
B)a more equitable compensation system will be created
C)stronger pay-for-performance perceptions will occur
D)pay rates within a pay structure will be compressed

Question

Quizplus · Accepted Answer

If wage increases are determined solely on the basis of the CPI, then pay rates within a pay structure will be compressed. This is because CPI increases are typically given to all employees, regardless of their individual performance or skills, which can result in a narrowing of pay differences within the organization.

What Will Most Likely Result from Determining Wage Increases Solely