Asked by Michael Brazis on May 06, 2024

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Many organizations do not offer merit raises to employees who are at the top of their pay ranges.This can cause morale problems for these employees.What is a potential solution to this issue?

A) Cut pay for employees who are below the top of the pay range.
B) Give merit bonuses to the affected employees.
C) Re-evaluate the performance appraisal methods.
D) Increase minimum pay for all employees.

Merit Raises

A method of increasing an employee's pay based on their performance.

Pay Ranges

Sets of varying salaries that an employer is willing to pay for a particular job, reflecting experience, skill level, and responsibilities.

Merit Bonuses

Financial rewards given to employees based on their performance, achievements, or meeting certain criteria.

  • Understand the challenges and solutions related to merit pay systems.
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Stephanie GarciaMay 07, 2024
Final Answer :
B
Explanation :
Giving merit bonuses to the affected employees is a potential solution to this issue as it recognizes and rewards their hard work and achievements, without necessarily increasing their base salary. This can help boost morale and incentivize continued high performance. Cutting pay for employees who are below the top of the pay range could lead to demotivation and a negative work environment. Re-evaluating performance appraisal methods could be a helpful step, but may not directly address the issue of limited opportunities for salary growth. Increasing minimum pay for all employees is a separate issue and does not address the specific problem at hand.