Review:
Merit Based Pay
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
Merit-based pay is a compensation strategy that rewards employees based on their performance and achievements.
Key Features
- Rewards employees based on merit
- Increases motivation and productivity
- Provides transparency in compensation decisions
- Encourages professional development
Pros
- Motivates employees to perform at their best
- Rewards top performers fairly
- Promotes a culture of excellence
- Can lead to higher employee retention
Cons
- Subjectivity in performance evaluation can lead to bias
- May create competition and tension among employees
- Harder to quantify the value of individual contributions in some roles