Merit Pay

What is Merit Pay?

 

‘Merit Pay’ refers to a payment mode in which the employees’ compensation is based on their performance in the workplace. It is more commonly used in the education sector.

 

The main advantages of merit pay are that it increases the effectiveness of the employees as well as motivates them to work harder. It will also help the company understand the employees who are more efficient in their work, which will help them develop training programs for those who perform poorly.

 

A major disadvantage of this system is that it considers only performance as the sole metric for providing the pay and ignores other key factors which help an individual complete their job successfully.

More HR Terms

Deep Learning

What is Deep Learning?   ‘Deep Learning’ is a component of artificial intelligence, where the AI is fed with huge unstructured data sets and it

Branding

What is Branding ? ‘Branding’ is the conscious effort put in by a company to set itself apart from the competition. It helps in setting

Catfish Effect

What is Catfish Effect ?    The ‘Catfish Effect’ is the effect that motivates weaker members of a group to fight in the face of

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’