Which factor is likely to increase Total Cash Compensation for an employee?

Which factor is likely to increase Total Cash Compensation for an employee?

• A. A lack of performance feedback
• B. Achievement of performance targets
• C. Reduction in work hours
• D. Minimal employee engagement

Answer: (B)

Achievement of performance targets is a key factor that can significantly increase Total Cash Compensation for an employee. When employees meet or exceed the established performance targets set by their organization, it often triggers various forms of financial rewards such as bonuses, merit increases, or other incentive compensation. Employers typically design these compensation structures to motivate employees to perform at higher levels and align individual contributions with company goals. Performance-based incentives are common in many organizations as they not only reward past achievements but also encourage ongoing improvement and productivity. Therefore, meeting or surpassing performance targets directly correlates with enhanced total cash compensation, reinforcing a performance-driven culture within the organization.

Achievement of performance targets is a key factor that can significantly increase Total Cash Compensation for an employee. When employees meet or exceed the established performance targets set by their organization, it often triggers various forms of financial rewards such as bonuses, merit increases, or other incentive compensation. Employers typically design these compensation structures to motivate employees to perform at higher levels and align individual contributions with company goals.

Performance-based incentives are common in many organizations as they not only reward past achievements but also encourage ongoing improvement and productivity. Therefore, meeting or surpassing performance targets directly correlates with enhanced total cash compensation, reinforcing a performance-driven culture within the organization.