Entire Site
Free Trial
Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.
- Create BookmarkCreate Bookmark
- Create Note or TagCreate Note or Tag
- DownloadDownload
- PrintPrint
Chapter 4. Making Pay Changes > Merit
Merit
A merit pay system encourages good performance by rewarding it. An employee who just barely meets the performance standards for the job gets a small increase or no increase while an employee who performs well on the job gets a large increase. Most employees feel that merit pay is appropriate if the standards for appraising performance are fair and are understood by the employees.
A merit pay system can help the company in two ways.