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SHRM-CP Exam PrepQuestion 10 / 10

John works at a manufacturing company where employees are offered bonuses for overtime hours. The company pays a $3.00 per-hour bonus for weekend overtime and a $5.00 per-hour bonus for holiday overtime, while no bonus is offered for weekday overtime. What is this type of incentive pay an example of?

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✓ Correct answer: B. Time-based differential pay Answer: Time-based differential pay Time-based differential pay, or shift differential, is a compensation method used to incentivize employees for working less desirable shifts or times, such as weekends or holidays.

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