Question

Which of the following is a disadvantage of incentive compensation plans? Group of answer choices Employees are taxed heavily on their income from incentive plans. Employers are taxed heavily on their expenditure incurred through incentive plans. Employees know that rise in productivity will have no impact on their compensation. Employers are unable to increase employee productivity while following incentive plans. Employees don't develop loyalty to their employers when incentive plans are practiced.

Answer 1

A disadvantage of incentive compensation plans is that employees don't develop loyalty to their employers.

Step-by-step explanation:

A disadvantage of incentive compensation plans is that employees don't develop loyalty to their employers. When employees are motivated solely by financial rewards, they may not feel a sense of commitment or connection to their organization. This lack of loyalty can lead to higher turnover rates and a less engaged workforce.

Furthermore, it is important to note that this disadvantage does not apply to all employees. Some individuals may still be motivated by financial incentives, while others may value other forms of recognition and reward.

Answer 2

Employees don't develop loyalty to their employers when incentive plans are practiced.

Step-by-step explanation:

Incentive compensation plan can be regarded as strategic that is been utilized by using incentives in driving a better business outcomes together with alignment of sales rep behavior to go with the goals of the organization. It is a compensation plan which can appear in different forms such as commissions as well as bonuses and prizes. It should be noted that one of the disadvantage of incentive compensation plans is that Employees don't develop loyalty to their employers when incentive plans are practiced.