A company found that a $10,000 lump-sum bonus was more motivating to employees than the equivalent amount spread across 26 pay cycles as a base salary increase. According to the lecture, what does this illustrate about incentive remuneration?

Question

Accepted Answer

One-off bonuses can be more psychologically salient to employees than the same amount spread across regular pay cycles

Answer

Bonuses are always mathematically larger in total value than equivalent base pay increases

Answer

Spreading a bonus across pay cycles always increases its motivational impact

Answer

Bonuses are legally required to be paid as lump sums under the Fair Work Act

Crowdly

A company found that a $10,000 lump-sum bonus was more motivating to employees t...

Want instant access to all verified answers on moodle.pia.edu.au?