How do I make my soldiers better?

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I've noticed that many of my soldiers in my combat unit have yellow bars on their stats. I'm assuming that this means they have gained boosts to their attributes. Is there a limit to the boosts they can receive?
I also noticed that several units also have medals on their portraits are those yellow bars tied to that medal? Can my soldiers receive multiple medals?
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Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
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