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CHRP Knowledge Exam · Question

A 'merit increase' in compensation is based on which factor?

Merit increases are awarded to employees based on their individual performance, often linked to performance appraisals and goal attainment.

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Question: A 'merit increase' in compensation is based on which factor?

Answer options:

  • Length of service with the company
  • Inflation rate and cost of living adjustments ✅ Individual performance and achievement of objectives
  • Market rates for similar positions

Correct answer: Individual performance and achievement of objectives

Explanation: Merit increases are awarded to employees based on their individual performance, often linked to performance appraisals and goal attainment.

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