What type of pay increase is tied directly to an individuals

What type of pay increase is tied directly to an individuals favorable performa - aPHR Prep

Question

What type of pay increase is tied directly to an individual's favorable performance on the job?

Answers

Cost-of-living
correct
Merit
Promotional
Incremental

Explanation

The Correct Answer is: B. Merit

A merit pay increase is directly tied to an individual’s job performance. It rewards employees based on performance evaluations, achievement of goals, and demonstrated contribution to the organization. Merit increases are designed to motivate high performance, reinforce accountability, and differentiate pay based on results rather than tenure or external economic factors.

Why the other options are incorrect:

A. Cost-of-living
Cost-of-living increases are intended to offset inflation and rising expenses. They are typically applied broadly and are not linked to individual performance.
C. Promotional
Promotional increases occur when an employee moves to a higher-level role with greater responsibilities. The increase reflects the new position, not past performance alone.
D. Incremental
Incremental increases are usually based on tenure or predefined schedules. They are automatic and do not specifically reward superior performance.

Easy way to pass your test within a week with prepsaret

You don’t need one month to study and pass your test.
With Prepsaret, it takes you a few days to grasp all the concepts needed to pass your exams

View Courses Offered