Question

What is merit pay? Do you think it's a good idea to award employees merit raises? Why or why not?

Answer 1

Merit pay is a way to deal with remuneration that rewards higher performing workers with extra pay, now and then called incentive pay.

The merit pay system is most material when there is nitty-gritty information accessible to gauge the performance of employees. Consider how that information can push representatives to accomplish more, cushioning their own paychecks, just as the organization's primary concern. It is always better to award employees with merit pays as its

• Imparts organization goals: Merit pay sends an incredible message about how you need to see representatives perform and what you need to see them contribute. It affirms what you most incentive from representatives. Merit pay additionally gives a vehicle to business to perceive singular execution on a one-time premise. This is helpful for compensating representatives who may have partaken in a one-time venture.
• Allows employees to know where they stand: Making the scope of the accessible merit pay open permits workers to see where their expansion falls in the merit pay ranges built up by your organization pay plan. It very well may be a decent method to remunerate the representatives that you most need to keep. At the point when representatives get not exactly the top increment, bosses have a chance to portray and talk about precisely how the workers should improve their exhibition to fit the bill for the top merit increment during the following pattern of raises.
• Helps in employee maintenance: Merit pay can enable a business to separate between the exhibition of high and low performing employees and prize the presentation of the better workers. This can help in maintenance on the grounds that no business needs to lose the organisation's best performers.