Which two factors should compensation professionals consider before endorsing the use of merit pay systems?

Question

Quizplus · Accepted Answer

Compensation professionals should consider two factors before endorsing the use of merit pay systems: (1) commitment from top management, who must support and communicate the pay plan to employees, and (2) job design, which determines the criteria that merit pay is based on. Supervisor's rating bias and stock price are not directly related to the use of merit pay systems, and job analysis alone does not provide sufficient information to determine whether a merit pay system is appropriate.

Which Two Factors Should Compensation Professionals Consider Before Endorsing the Use