Bill runs a small business and is in the process of revising out his company's compensation plan.After researching the market and determining the salary range,Bill starts to plan how much of an increase in pay he can offer each employee subsequently.In the context of increasing pay,which of the following is the most appropriate course for Bill to follow?
A) Bill should determine this based on an employee's performance,value,and contribution to the small business.
B) Bill should check salary surveys and want ads.
C) Bill should pay the amount needed for a person or family of a particular size to meet the basic necessities of life as an increase.
D) Bill should take no more than 3 percent of the annual personnel budget and allocate it to pay increment.

Question

Quizplus · Accepted Answer

To increase pay, it is important for Bill to consider an employee's performance, value, and contribution to the small business. This ensures a fair and rational approach to salary increases and provides motivation to employees to perform better. Checking salary surveys and want ads (B) can only give an idea of the current market trends and may not be an accurate reflection of an employee's worth or contribution. Paying the amount needed for basic necessities (C) may not take into account an employee's performance and contribution and may not be sustainable for small businesses. Additionally, allocating a fixed percentage (D) may not be enough to acknowledge an employee's individual effort and contribution.

Bill Runs a Small Business and Is in the Process