A compensation system that pays employees such that "some skin is in the game" means that
A) a portion of employee pay is at risk
B) employers risk high labor costs
C) level of base pay is below competitors
D) base pay is low while benefits are generous

Question

Quizplus · Accepted Answer

When a compensation system pays employees such that "some skin is in the game," it means that a portion of employee pay is at risk. This is typically done through variable pay or incentive pay programs, where a portion of an employee's compensation is tied to performance or company outcomes. This approach is thought to motivate employees and align their interests with the goals of the company.

A Compensation System That Pays Employees Such That "Some Skin