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Worldatwork CECP Exam - Topic 2 Question 101 Discussion

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?
A) A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits
B) 100% variable pay to motivate all employees to maximize productivity and sales
C) 90/10 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
D) High base pay and low variable pay to ensure predictability of total compensation expense

Worldatwork CECP Exam - Topic 2 Question 101 Discussion

Actual exam question for Worldatwork's CECP exam
Question #: 101
Topic #: 2
[All CECP Questions]

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

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Suggested Answer: A

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Rory
9 hours 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.
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Jaime
6 days ago
I feel like option C might be the best choice since it balances base pay and incentives, especially for management.
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Mayra
11 days 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.
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Levi
16 days 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.
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