Q8: A new merchandising analyst has a starting Compensation salary of $40,000 per year. Her pay will be and Benefits automatically increased in annual increments of 5% until she hits the midpoint of her salary range. At this point, her annual pay increases will range from 0-10% based on the quality of her job performance. This is an example of which type of base pay system? (C). Since pay is adjusted based on tenure Lecture, initially and then performance, this is a Slide 20 combination step-rate and performance system. a. Time-based step rate system b. Flat or single rate system c. Combination step-rate and performance system d. time-sensitive incentive rate system e. none of the above