DECA Human Resources Management Complete Practice Test 2026

Question: 1 / 400

What type of pay system is often linked to performance?

Base salary only

Commission-based pay

Commission-based pay is linked to performance as it directly ties an employee's compensation to their sales or specific performance metrics. In this system, employees earn a percentage of the sales they generate, incentivizing them to enhance their productivity and achieve higher sales figures. This approach aligns the interests of the employee with those of the organization, as both benefit from increased sales.

Base salary only does not typically include performance-linked incentives, making it unrelated to direct performance outcomes. Overtime pay compensates employees for hours worked beyond a standard workweek, while hourly wages are simply based on the time worked. Neither of these systems adjusts compensation based on individual performance metrics, which is a hallmark of commission-based pay. Therefore, it is the method most explicitly tied to an individual's performance results.

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Overtime pay

Hourly wages

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