Achieving Meritocracy in the Workplace

Merit-based reward practices can unintentionally lead to pay disparities based on gender, race, and national origin. Here’s how companies can use data, transparency, and accountability to prevent that.

Emilio J. Castilla

Summer 2016

For their companies to remain competitive and successful, many executives strongly believe that they need to recruit and retain top talent. And to do so, they must foster meritocracies — hiring, rewarding, and promoting the best people, based on their merit. As a result, the most progressive companies have created formal systems for ensuring that job applicants and employees are judged solely by their efforts, skills, abilities, and performance, regardless of gender, race, class, ...