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.

Question

Quizplus · Accepted Answer

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.

To Make Merit Increases Consistent, Administrators of Merit Pay Programs