Why Are Some Compensation Plans Referred to as Variable Pay

question 92

Multiple Choice

Why are some compensation plans referred to as variable pay?

• A) because employee pay varies with market pay
• B) because employee pay is comprised of varying components
• C) because employee pay is linked to performance
• D) because employer costs vary with the incentives offered

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Definitions:

Supervision Levels

The hierarchical levels within an organization's management structure that oversee and direct the work of others.

Possessing Information

Involves having knowledge, facts, or data about a specific subject matter or situation.

Appearing Knowledgeable

The act of presenting oneself as well-informed and intelligent in a specific area, regardless of one's actual level of expertise.

Employee Searches

Employee searches involve the examination of an employee's personal property or workspace by an employer, usually conducted to ensure compliance with workplace policies or for security reasons.