Asked by Danny Patricola on Jul 05, 2024
Verified
To make merit increases consistent, administrators of merit pay programs must closely monitor the compa-ratio and the
A) number of grades in the pay structure.
B) individual's performance ratings.
C) number of new hires in the company.
D) company's stock price in the current financial year.
E) average pay of the area where the organization is based.
Compa-Ratio
A metric that compares an employee's salary to the midpoint of a salary range for their position, used to gauge how competitively they are being compensated.
Merit Pay Programs
Compensation programs where employees receive bonuses or pay increases based on their performance evaluations.
- Grasp the methodology of associating performance reviews with incentive compensation.
- Understand the impact of an employee's viewpoint on the success of compensation incentive schemes.
Verified Answer
TK
Tyler KinchenJul 11, 2024
Final Answer :
B
Explanation :
Merit increases should be tied to an individual's performance rating, so closely monitoring these ratings is crucial to ensure consistency. Comp-ratio may also be a helpful tool in ensuring consistency as it compares an employee's pay to the market rate for their position. However, the other options listed do not directly relate to consistency in merit increases.
Learning Objectives
- Grasp the methodology of associating performance reviews with incentive compensation.
- Understand the impact of an employee's viewpoint on the success of compensation incentive schemes.