What are the types of raises based on performance evaluations?

• A. Merit increases, wage adjustments based on market surveys, and cost of living adjustments (COLA).
• B. Promotional increases.
• C. Seniority-based increases.
• D. Quality bonuses.

Answer: (A)

Raises tied to performance evaluations come from several bases. Merit increases are the classic pay raise tied to how well someone performed, rewarding those who meet or exceed expectations. Wage adjustments based on market surveys are used to keep salaries competitive with similar roles in the job market, which can influence what counts as a fair raise even when performance is solid. Cost of living adjustments, or COLA, adjust pay to reflect inflation and rising living costs; these are not tied to an individual’s performance but are still a common type of salary adjustment in many organizations.

Promotional increases happen when an employee moves to a higher role with greater responsibilities, which is separate from annual performance ratings. Seniority-based increases are based on length of service rather than performance. Quality bonuses are typically tied to achieving specific quality metrics and are often separate from base pay raises.

So the combination of merit increases, market-based adjustments, and COLA best captures the types of raises that arise from or alongside performance evaluations.