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 places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs.

Question

Quizplus · Accepted Answer

A pay structure that rewards employees for winning promotions can create a disincentive for employees to gain valuable experience through lateral career moves. This can result in employees only focusing on moving up the career ladder instead of developing broader skills and knowledge, which can limit their potential in the long run.

Which of the Following Is a Disadvantage of a Pay