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Which incentive is NOT directly linked to an employee's performance?Performance bonusMerit payProfit sharingFixed salary

Question

Which incentive is NOT directly linked to an employee's performance?

  • Performance bonus
  • Merit pay
  • Profit sharing
  • Fixed salary
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Solution

To determine which incentive is NOT directly linked to an employee's performance, let's analyze each option:

  1. Performance Bonus: This is directly linked to an employee's performance as it rewards individuals based on their achievements or contributions.

  2. Merit Pay: This too is directly aligned with performance, as it increases an employee's base salary based on their performance evaluations.

  3. Profit Sharing: While this incentive can be tied to the overall success of the company rather than individual performance, it is often influenced by the collective performance of all employees.

  4. Fixed Salary: This is typically not linked to performance. A fixed salary is a set amount that an employee receives regardless of their individual performance levels.

Conclusion

Based on this analysis, the incentive that is NOT directly linked to an employee's performance is Fixed Salary.

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