Which of the following is an advantage of a lump-sum increase (LSI)plan compared with traditional raises?
A) LSI plans eliminate the need for annual adjustments of the pay matrix.
B) Employees are more satisfied with LSIs.
C) It heightens employees' awareness of what reward their performance merited.
D) It increases the compounding effect of succeeding raises on the employee's base pay.

Question

Quizplus · Accepted Answer

LSI plans make the reward for performance more explicit and immediate, thereby increasing employees' awareness of the connection between their performance and their compensation. Traditional raises, which are often smaller and spread out over time, may not provide as clear a signal of this relationship.

Which of the Following Is an Advantage of a Lump-Sum