GK
HUMAN RESOURCE MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How does merit pay differ from a bonus?
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Merit pay becomes part of an employee’s base pay, but a bonus does not
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A bonus becomes part of an employee’s base pay, but merit pay does not
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Merit pay is linked to individual performance, while a bonus i linked to profits
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A bonus is linked to individual performance, while merit pay is linked to profits
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Explanation:
Detailed explanation-1: -C) Merit pay is linked to individual performance, while a bonus is linked to profits.
Detailed explanation-2: -How does merit pay differ from a bonus? Merit pay becomes part of an employee’s base pay, but a bonus does not.
Detailed explanation-3: -With merit pay, you can also reward individual employees for their work performance. But, the big difference is that merit pay is a permanent increase to an employee’s wages while incentive pay is temporary. For example, your employee consistently meets targets and completes tasks ahead of the deadline.
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