Question

Which of the following identifies a pay adjustment that is given to all employees regardless of employee performance or the organization's financial health?

A. Differential pay
B. Market-based increase
C. Cost-of-living adjustment
D. Lump-sum increase

Answer 1

A cost-of-living adjustment (COLA) is a pay adjustment given to all employees regardless of employee performance or the organization's financial health.

Step-by-step explanation:

The pay adjustment that is given to all employees regardless of employee performance or the organization's financial health is a Cost-of-living adjustment (COLA).

A COLA is an adjustment made to wages to keep up with inflation. It guarantees that the wages of employees will increase by a certain percentage when the cost of living rises, regardless of individual performance or the financial health of the organization.

For example, if the inflation rate is 5% and the COLA is 3%, employees will receive a total pay increase of 8%.