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Incentive Plans: Merit Pay
An incentive plan implemented on an institutional wide basis to
give all employees an equal opportunity for consideration, regardless
of funding source. The merit increase program is implemented when
funds are designated for that purpose by the institution's administration,
dependent upon the availability of funds and other constraints.
Advantages
* Allows the employer to differentiate
pay given to high performers.
* Allows a differentiation between
individual and company performance.
Allows the employer to satisfactorily reward an employee
for accomplishing a task that might not be repeated (such as implementation
of new systems).
Dis
Advantages
* The pay is subjective.
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