What is an advantage of bonuses over a 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

Bonuses are typically tied to recent performance and can be used to incentivize and reward exceptional work. With a merit-based pay plan, employees may feel that their base salary is inadequate if they are not constantly receiving raises based on their performance. Bonuses provide a more flexible and targeted way to reward and incentivize high-performing employees without continually increasing their base salary.

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