Which of the following is a potential advantage of performance-based rewards?

Performance-based rewards are designed to align employees' efforts with organizational goals by directly linking their compensation to their performance outcomes. One of the primary advantages of this approach is that it serves as a powerful motivator for employees to enhance their performance levels. When employees know that their efforts can lead to tangible rewards, such as bonuses or other incentives, they are more likely to increase their productivity and strive for excellence in their roles.

This system encourages a culture of accountability and achievement, as employees are motivated to meet or exceed targets to reap the benefits of their hard work. It can also stimulate a competitive spirit among team members, pushing them to innovate and contribute more effectively towards the organization's success. Overall, performance-based rewards not only incentivize individual contributions but also foster a results-oriented mindset amongst employees, driving them to perform at optimal levels.