Discuss Worldatwork CECP Exam Topic 2 Question 101

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

AA varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits

B100% variable pay to motivate all employees to maximize productivity and sales

C90/10 for the majority of employees (base/variable) to share in the company's success with increased variable pay for management/executives to motivate employees to seek higher positions

DHigh base pay and low variable pay to ensure predictability of total compensation expense

Suggested Answer: A

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15 comments · newest first

Jessenia 1 month ago

D is safe, but might not drive high performance.

Zena 1 month ago

C encourages growth and rewards hard work.

Edelmira 1 month ago

A gives flexibility based on employee impact.

Jessenia 2 months ago

B sounds good for motivation, but too risky for some.

Zena 2 months ago

I prefer C. It balances base and variable pay well.

Edelmira 2 months ago

I think A is the best option. It aligns pay with performance.

Novella 2 months ago

Wait, is 100% variable even realistic? Sounds a bit extreme!

Adria 2 months ago

I disagree, high base pay is better for stability.

Daryl 3 months ago

A varying mix is definitely needed to align with goals.

Jessenia 3 months ago

100% variable pay? That sounds risky!

Maryrose 3 months ago

I think option C makes the most sense for most employees.

Rory 3 months ago

I’m leaning towards option D because having a high base pay could help with employee retention, but I'm not confident it's the best for motivation.

Jaime 3 months ago

I feel like option C might be the best choice since it balances base pay and incentives, especially for management.

Mayra 3 months ago

I'm not entirely sure, but I remember a practice question that suggested a mix of base and variable pay could be more motivating for most employees.

Levi 4 months ago

I think option A makes sense because it allows for flexibility based on how much impact an employee has on the company's goals.

Worldatwork CECP Exam - Topic 2 Question 101 Discussion