Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?
A) It does not focus on setting pay for groups of jobs.
B) It does not make adjustments to a pay rate to reflect differences in labor markets.
C) It discourages employees from gaining valuable experience through lateral career moves.
D) It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills.
E) It does not provide a precise definition of a job's responsibilities.

Question

Quizplus · Accepted Answer

A pay structure that rewards employees for winning promotions may discourage employees from gaining valuable experience through lateral career moves, as they may feel that they will not be rewarded for such moves. This could lead to employees being less well-rounded and potentially less effective in their jobs.

Which of the Following Is a Disadvantage of a Pay