To be successful, an incentive compensation plan must be ______.Multiple choice question.originalcomplexpercentage-basedmeasurable

To answer the question about the characteristics of a successful incentive compensation plan, let's analyze the options provided:

1. Original: While being original can be beneficial, it is not a strict requirement for an incentive compensation plan to be successful.

2. Complex: A complex plan might confuse employees rather than motivate them. Simplicity often leads to better understanding and adoption.

3. Percentage-based: This refers to how incentives are calculated. While percentage-based plans can be effective, they are not the only model to ensure success.

4. Measurable: This is critical. A successful incentive compensation plan must enable performance and results to be tracked clearly, allowing employees and managers to assess achievements against defined benchmarks.

Conclusion

Given these evaluations, the most appropriate answer is "measurable." Successful incentive compensation plans need to be measurable to assess performance, rewards, and motivation effectively.