From an employer's perspective, which of the following is an advantage of merit increases on a lump-sum basis?
A) They do not contribute to escalating base salary levels.
B) They add a permanent sum to the base salary.
C) They are done in conjunction with promotions.
D) They reflect annual adjustments in base salary.

Question

Quizplus · Accepted Answer

Merit increases on a lump-sum basis are advantageous for employers because they provide a one-time payment for performance without increasing the employee's base salary. This helps control long-term payroll costs.

From an Employer's Perspective, Which of the Following Is an Advantage