Podcast
Questions and Answers
When are employees eligible for an annual merit increase?
When are employees eligible for an annual merit increase?
- December depending on annual company profits
- August based on their performance evaluation rating (correct)
- March after supervisor feedback
- January based on quarterly reviews
What happens if an employee reaches the maximum pay for their pay grade?
What happens if an employee reaches the maximum pay for their pay grade?
- They are ineligible for any merit increase
- They receive the increase as a continuous salary raise
- They automatically get a promotion
- They may receive a lump sum payment instead of a base pay increase (correct)
Who must approve the merit increases?
Who must approve the merit increases?
- A committee of employee representatives
- CEO and Board of Directors (correct)
- Department managers and HR
- Employee's direct supervisor
Which statement is true regarding merit increases?
Which statement is true regarding merit increases?
What is the timing for merit increases to be distributed?
What is the timing for merit increases to be distributed?
Flashcards
Merit Increase Eligibility
Merit Increase Eligibility
Employees may receive a raise in August based on performance review ratings.
Maximum Pay Limit
Maximum Pay Limit
If an employee is at the highest pay in their grade, the raise is a lump sum.
Discretionary Award
Discretionary Award
Employee merit increases require approval from CEO and Board.
Annual Merit Increase
Annual Merit Increase
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Evaluation Timing
Evaluation Timing
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Study Notes
Annual Merit Increase Eligibility
- Employees may receive an annual merit increase in August.
- Eligibility is based on performance evaluation ratings.
- Increases are part of the annual performance evaluation process.
Maximum Pay Grade Considerations
- If an employee reaches the maximum pay for their pay grade, the increase is paid as a lump sum.
- It's not added as a percentage to their base pay.
Discretionary Award
- Merit increases are discretionary awards (not guaranteed).
- Approval from the CEO and Board is required.
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Description
Test your knowledge on the criteria and processes related to annual merit increases. This quiz covers eligibility based on performance evaluations, maximum pay grade considerations, and discretionary awards. Ensure you understand how these factors play into employee compensation.
