What is an advantage of bonuses over merit-based pay plan?
A) Bonuses improve flexibility of the workforce.
B) Bonuses are paid based on a formula.
C) Bonuses improve performance of the group as a whole.
D) Employees don't view bonuses as a part of their salary.
E) Employees are rewarded for recent performance.

Question

Quizplus · Accepted Answer

Bonuses are typically given as a one-time reward for recent performance, whereas merit-based pay plans are based on ongoing evaluation of an employee's performance throughout the year. Therefore, bonuses can be a more motivating reward for employees as they feel more directly tied to their recent efforts.

What Is an Advantage of Bonuses Over Merit-Based Pay Plan