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In general, the risk of measurement error in an ABC system increases when:
Merit Pay System
A compensation strategy that rewards employees based on their performance and achievements in the workplace.
Merit Pool
A budget set aside for merit-based increases in pay for employees, typically based on performance reviews.
High Performers
Employees who consistently exceed the standard performance expectations in their roles, contributing significantly to the organization's success.
Incentive Pay
A form of compensation designed to reward employees for achieving specific performance targets or outcomes, promoting increased productivity and motivation.
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