When compared to merit pay,incentive pay:
A)can be more subjectively based
B)is a permanent increase in pay
C)is not as useful in tying rewards to outcomes as merit pay
D)can take the form of profit sharing and gain sharing
E)is accurately described by all of the above

Question

Quizplus · Accepted Answer

Incentive pay can take the form of profit sharing and gain sharing, which are both examples of pay that is tied to outcomes. Option A is incorrect because incentive pay is typically based on objective measures, such as sales or production goals. Option B is incorrect because incentive pay is often temporary and tied to achieving specific goals. Option C is also incorrect because incentive pay is more useful in tying rewards to outcomes than merit pay.

When Compared to Merit Pay,incentive Pay