Asked by Mireille Mathieu Ebode Nkoudou on Jul 26, 2024
Verified
Lump-sum merit pay does not contribute to escalating base salary levels.
Lump-sum Merit Pay
A one-time payment given to an employee as a reward for performance, rather than a continuous salary increase.
Base Salary Levels
The foundational rate of pay before bonuses, benefits, or allowances are added, usually determined by role complexity and market rates.
- Comprehend the theory and critiques of merit pay schemes.
Verified Answer
NP
Nadege PhilogeneJul 28, 2024
Final Answer :
True
Explanation :
Lump-sum merit pay is a one-time payment given for performance and does not alter an employee's base salary, thus it does not contribute to escalating base salary levels.
Learning Objectives
- Comprehend the theory and critiques of merit pay schemes.