Question

Do you feel that merit based pay is a good practice? Why or why not?

Answer 1

I feel merit based incentives is a better practice. There should be a base pay and you should be offered incentives if you do anything exceptional.

The problem with merit based pay is no two humans have equal intellect and merit. Also there are no clear cut boundaries to grade merit. What may seem great to someone might seem average to other. There is a possibility for exploitation of labour by an employer by grading a meritorious work as mediocre, This could create friction between the employee and employer. This could also lead to legal issues and mayhem.

Having a base pay would ensure less exploitation and promise respectable pay to the work being performed. Offering incentives will encourage people to sharpen their skills. It is also shown to increae efficiency and productivity according to some studies. This system helps create meritorious and better skilled people by offering them a chance and motivation to get better alongside honouring the merit.

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