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Strategic Compensation: A Human Resource Management Approach, 9/e
book

Strategic Compensation: A Human Resource Management Approach, 9/e

by Joseph J. Martocchio
January 2016
Intermediate to advanced content levelIntermediate to advanced
480 pages
20h 58m
English
Pearson
Content preview from Strategic Compensation: A Human Resource Management Approach, 9/e

Possible Limitations of Merit Pay Programs

  1. 5 Summarize the possible limitations of merit pay programs.

Despite the popularity of merit pay systems, these programs are not without potential limitations, which may lessen their credibility with employees. If employees do not believe in a merit pay program, the pay system will not bring about the expected motivational impacts. Supervisors, HR managers, and compensation professionals must address the following nine potential problems with merit pay programs.

Failure to Differentiate among Performers

Employees may receive merit increases even if their performance does not warrant them because supervisors want to avoid creating animosity among employees. Poor performers, therefore, may receive the ...

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Publisher Resources

ISBN: 9780134320540