Job-based pay can include seniority and merit pay. In a job-based compensation system, workers will receive a defined wage for each job. This type of compensation structure is easy for management to understand. Seniority pay means that employees receive an automatic raise for a period of time that they perform their job. Merit pay is when an employer pays compensation over time determined by an individual's work performance. Incentive pay occurs when an employee is financially rewarded for achieving a work goal or objective. A company can adopt this structure because it is easy for those who manage it to understand and it is easy for them to define the compensation structure