A typical question raised about merit pay systems is:

A) Who assesses performance?
B) What is a two-tier system?
C) How do I get paid?
D) Why does it work this way?
E) What are the benefits?

Merit Pay Systems

Compensation systems where employee pay increases are based on performance assessments, aimed at rewarding high achievers and encouraging continued high performance.

Assess Performance

The process of systematically evaluating or measuring an individual's, team's, or company's performance against set standards or objectives.

Typical Question

A common or standard inquiry that is often asked in various contexts to gather information or clarify understanding.