Giving an employee a pay increase based on how well they have performed over the course of the last evaluation period is known as a:
A) COLA.
B) commission.
C) variable pay.
D) merit increase.
E) skill-based pay plan.

Question

Quizplus · Accepted Answer

A merit increase is specifically tied to an employee's performance, whereas the other options (COLA, commission, variable pay, skill-based pay plan) may be influenced by other factors beyond individual performance.

Giving an Employee a Pay Increase Based on How Well