What is an advantage of bonuses over merit-based pay plan?
A) Employees don't view bonuses as a part of their salary.
B) Bonuses improve flexibility of the workforce.
C) Bonuses are paid based on a formula.
D) Bonuses improve performance of the group as a whole.
E) Employees are rewarded for recent performance.

Question

Quizplus · Accepted Answer

The incentive effects of performance bonuses are generally higher than those of merit pay because, rather than paying for performance years ago (that was rolled into base pay), bonuses reward recent performance.

What Is an Advantage of Bonuses Over Merit-Based Pay Plan