Employers using a lump-sum merit program will need to periodically increase base salaries in order for employees to keep pace with the cost of living or general market wages.

Question

Quizplus · Accepted Answer

A lump-sum merit program provides one-time payments rather than permanent salary increases, so base salaries may need periodic adjustments to align with inflation or market wage trends.

Employers Using a Lump-Sum Merit Program Will Need to Periodically