Question

Golden Care provides lawn services in residential areas. They advertise by paying workers to put flyers on front doorknobs where residents are most likely to see them. Initially, these workers were paid based on how many flyers they distribute. After a few days of noticing flyers attached to mailboxes, side mirrors of cars, and dropped in gutters, Golden Care decides to change the incentives to improve the quality of the work performed. Which form of compensation would be the best way to improve worker incentives?

A. Compensation based on how quickly workers distribute the flyers.
B. Compensation in the form of an hourly wage.
C. Compensation based on how long they've worked at the Company
D. Compensation based on the number of new customers who respond to flyers.

Answer 1

The best form of compensation to improve worker incentives at a lawn service company is likely based on the number of new customers who respond to the flyers (option D) , as it aligns workers' earnings with the company's goal of gaining new customers.

Step-by-step explanation:

The student has asked which form of compensation would be the best way to improve worker incentives for a company that provides lawn services. Of the options provided, compensation based on the number of new customers who respond to flyers would likely be the best way to align workers' incentives with the company's goals. This method encourages workers to distribute flyers effectively and responsibly, since their earnings are tied to the actual business results generated by their efforts, not just the quantity of flyers distributed.

Options such as compensation based on how quickly workers distribute flyers or an hourly wage do not directly incentivize high-quality distribution. Compensation based on how long they've worked at the company rewards longevity rather than effective performance. Therefore, linking pay to new customer conversions directly aligns the interests of the workers with the quality outcome desired by the company.