Which of the following is NOT true about variable transactional compensation?<\/p>\n\n\n\n
a) future rewards such as retirement benefits are likely to be used as a part of compensation<\/p>\n\n\n\n
b) an organization with variable transactional compensation will likely pay more than other employers<\/p>\n\n\n\n
c) variable transactional compensation provides strong monetary incentives for high performers<\/p>\n\n\n\n
d) new employees are often paid more than current employees<\/p>\n\n\n\n
The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n The correct answer is: a) future rewards such as retirement benefits are likely to be used as a part of compensation<\/strong>.<\/p>\n\n\n\n Variable transactional compensation<\/strong> focuses on immediate, performance-based monetary rewards<\/strong>, not long-term benefits like pensions or retirement plans. In this model, employees are compensated based on their current performance and results, rather than being promised future rewards. Therefore, option (a)<\/strong> is NOT true<\/strong> because retirement benefits are long-term, future-oriented<\/strong> rewards, which do not align<\/strong> with the immediate, transactional nature<\/strong> of variable compensation.<\/p>\n\n\n\n Now, let’s briefly explain why the other choices are generally true:<\/p>\n\n\n\n In summary, variable transactional compensation<\/strong> is all about short-term, high-impact financial rewards based on performance<\/strong>, not about building future security through benefits like pensions. Companies that use this system prioritize immediate results<\/strong> over long-term employee retention strategies. That\u2019s why future rewards<\/strong> like retirement benefits are not typically part<\/strong> of this compensation structure.<\/p>\n","protected":false},"excerpt":{"rendered":" Which of the following is NOT true about variable transactional compensation? a) future rewards such as retirement benefits are likely to be used as a part of compensation b) an organization with variable transactional compensation will likely pay more than other employers c) variable transactional compensation provides strong monetary incentives for high performers d) new […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-208182","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/208182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=208182"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/208182\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=208182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=208182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=208182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\nExplanation:<\/h3>\n\n\n\n
\n
This is often true because employers need to offer higher short-term financial rewards<\/strong> to attract and retain high-performing employees, especially when there\u2019s little job security or long-term promise involved.<\/li>\n\n\n\n
This is a key feature of the model. High performers are rewarded immediately and significantly<\/strong> with bonuses, commissions, or other financial incentives, encouraging them to maintain high levels of productivity.<\/li>\n\n\n\n
This can happen because employers use market-rate pay<\/strong> to attract new talent. In a system that focuses on performance and immediate rewards rather than loyalty, new hires might receive higher starting salaries or sign-on bonuses, even if current employees have more tenure.<\/li>\n<\/ul>\n\n\n\n