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When Considering Whether to Use Merit Pay Increases or Merit

Question 20

Multiple Choice

When considering whether to use merit pay increases or merit lump sum bonuses, an organization should consider that:


A) Bonuses generally cost the organization less because the payout doesn't permanently increase labor costs.
B) Merit pay increases occur once and do not have a lasting impact on the employee's compensation.
C) A lump sum bonus increases the employee's compensation each year.
D) Bonuses must be given to everyone in order to be fair, and not just those who reach certain objectives.
E) Merit pay increases look forward in order to provide an incentive for the employee to perform in the future.

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