Studies indicate that in order for merit pay to be most effective, it should be linked to ________.
A) company profits
B) annual base salary
C) employee overtime
D) employee performance
Question 2
How does merit pay differ from a bonus?
A) Merit pay becomes part of an employee's base pay, but a bonus does not.
B) A bonus becomes part of an employee's base pay, but merit pay does not.
C) Merit pay is linked to individual performance, while a bonus is linked to profits.
D) A bonus is linked to individual performance, while merit pay is linked to profits.
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