Wimsey Enterprises has announced that it will give all employees a 5% merit increase this year.This increase should really be termed a/an
A) cost-of-living adjustment.
B) across-the-board increase.
C) lump-sum increase.
D) market rate alignment.

Question

Quizplus · Accepted Answer

An across-the-board increase is when all employees receive the same percentage increase in salary or wages, regardless of their individual performance or skills. This is what Wimsey Enterprises has announced, as all employees will receive a 5% increase. It is not a cost-of-living adjustment, which is typically based on inflation rates and the economic climate, and may vary for different employees based on location or other factors. It is also not a lump-sum increase, which would involve a fixed amount of money rather than a percentage increase, or a market rate alignment, which would involve adjusting salaries to be competitive with industry norms.

Wimsey Enterprises Has Announced That It Will Give All Employees