CHAPTER 6- 6.2 & 6.3

What is the main reason for considering present level of base pay?

• To hire new staff

• To reduce employee turnover

• Based on past job performance

• To increase company profits

What type of merit pay increase is permanent?

• Temporary

• Recurring

• One-time bonus

• Nonrecurring

What is a common review date?

• Individual reviews based on performance

• All employees reviewed at once

• Monthly reviews

• Quarterly reviews

What is a characteristic of nonrecurring merit pay?

• Based on hire date

• Permanent salary increase

• One-time bonuses

• Annual reviews

Which plan provides fixed income regardless of sales performance?

• Draw plans

• Salary-only plans

• Commission plans

• Bonus plans

What motivates short-term performance goals in sales?

• Fixed income

• Low risk

• Performance-based bonus

• Base salary

What helps support salespeople during low-sales periods?

• Annual bonuses

• Salary-only plans

• Commission-based draw

• Fixed income

What is a benefit of using a common review period?

• Less admin work

• Higher costs

• Individualized reviews

• More admin work

What is the goal of merit pay systems?

• To encourage high performance

• To increase base pay

• To hire new employees

• To reduce costs

Which type of plan is often used for customer service?

• Bonus plans

• Draw plans

• Commission plans

• Salary-only plans