Merit-Based Raises

Paper Summary:

More and more organizations and businesses are using merit-based raise systems as a way of increasing worker productivity. The systems provide raises to the employees who demonstrate themselves as being valuable to the employer. This paper shows that the system allows the best workers to advance in pay more easily, giving all employees an incentive to work harder and achieve more. The workplace becomes more competitive, which increases the productivity.

From the Paper:

"There are advantages on both sides in using of this system, despite opposition from worker's unions. Employers can help keep the most skilled workers in difficult jobs, while these same skilled workers are able to benefit from more pay increases than are the less skilled workers. More competitive work environments, like those involved with jobs that pay based on a commission, are created, while the security of a salaried job is maintained. The continuous pay is still exists for all workers, but there is an added incentive to allow for employees working harder to make more money."

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