Your Company Is Experiencing High Turnover and Poor Work Quality

question 5

Multiple Choice

Your company is experiencing high turnover and poor work quality. Exit interviews indicate that a large percentage of employees indicate boredom as the primary cause for quitting your company. Almost 100 percent were satisfied with their compensation packages. Which of the following actions may reduce your high turnover rate?

• A) providing a pension option and offering a retirement planning service
• B) introducing pay-for-performance plans
• C) trying to enrich the jobs to make them more interesting
• D) offering dental and medical coverage

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Definitions:

Income Effect

The change in an individual's or market's consumption resulting from a change in real income.

Inferior Good

A type of good for which demand decreases as the income of consumers increases.

Convex Preferences

A preference structure where a consumer prefers mixtures or averages of two goods or bundles to extreme amounts of one good or bundle.

Utility Function

A mathematical representation in economics that quantifies the satisfaction or happiness an individual gains from consuming various bundles of goods and services.