Which of the following is NOT a downside to merit-based pay?
A)Merit pay is determined by the annual performance appraisal and is therefore only as valid as the employee's performance rating.
B)Employee compensation is impacted by economic and other marketplace conditions,not individual performance.
C)Merit pay plans face resistance from unions.
D)Seniority determines employee compensation.

Question

Quizplus · Accepted Answer

Option D is not a downside to merit-based pay. In fact, merit-based pay is designed to reward employees based on their individual performance, rather than seniority-based systems which reward employees based on their length of service. Option A, B, and C are all commonly cited downsides to merit-based pay.

Which of the Following Is NOT a Downside to Merit-Based