A manager in a company gives 5 percent merit pay increases each year to employees who perform well.Some of those employees started with substantially lower base pay raises.Over time,which of the following could be a result?

Question

Quizplus · Accepted Answer

Merit pay increases based on performance can lead to undesirable social structures within a company, as they may exacerbate pay disparities among employees, especially if some started with lower base pay. This can create divisions and resentment among staff, impacting teamwork and morale.

A Manager in a Company Gives 5 Percent Merit Pay