Employees may not believe that their compensation is tied to effort and performance,and they may not be able to differentiate between merit pay and other types of pay increases.

Question

Quizplus · Accepted Answer

This statement is true. Employees may not fully understand how their compensation is tied to effort and performance, and they may confuse merit pay with other types of pay increases such as cost of living adjustments or seniority-based pay. This can lead to confusion and dissatisfaction with the compensation system.

Employees May Not Believe That Their Compensation Is Tied to Effort