Performance bonuses honor individual achievement like merit pay does, but they are not added to base salary. Every performance period requires the employee to earn them again. The bonus may occasionally be a one-time incentive. Instead of relying on subjective judgments, bonuses may alternatively be based on objective performance metrics.
Describe merit pay.
- Merit pay, commonly referred to as pay for performance, is a pay increase based on a set of standards established by the employer. In order to discuss the employee's work performance during a specific time period, the employer typically has a review meeting with the employee.
- A increase based on employee performance is known as merit pay. It's based on a set of criteria established by your employer, and if you meet certain criteria, merit pay may be an option. Employers may provide bonuses, salary increases, and promotions as merit compensation.
- Performance bonuses honor individual achievement like merit pay does, but they are not added to base salary. Every performance period requires the employee to earn them again. The bonus may occasionally be a one-time incentive. Instead of relying on subjective judgments, bonuses may alternatively be based on objective performance metrics.
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