There is merit in merit pay

Article Abstract:

Proponents of merit pay argue that it motivates staff, brings organizational change and rewards employees fairly for their performance, while critics argue that it is subjective, undermines teamwork and does little for organizational productivity. Research by the British Institute of Personnel and Development, based on responses from 1,158 public and private sector employers shows that merit pay arrangements continue to increase in popularity, that high performers are encouraged and that managers perceive these arrangements as fair although teamwork does deteriorate.

Evaluation

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Competency profiles and merit pay at Reigate and Banstead

Article Abstract:

The performance-related pay system introduced for employees of Reigate and Banstead Borough Council in Surrey, UK, uses competency profiles to tie worker performance to business objectives. Employee merit pay is set based on data from the competency profile as well as overall performance. Managers and employees create performance agreements to assess performance in key job areas, key annual tasks, personal development, and related areas. The system is designed to reward quality performance and ensure organization-wide consistency in ratings.

Analysis, Innovations, Wage payment systems, Employee performance appraisals, Public employees, Government employees, Performance appraisals

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Merit on the menu at Pizza Hut

Article Abstract:

Pizza Hut (UK) Ltd has added key competencies to its merit review system for all 8,160 employees, including head office staff, restaurant management and catering staff. Key result areas are also included in the merit reviews. The company's pay rates are regularly checked against current market rates. A 3.5% 'pot' has been reserved for merit awards to head office and unit management staff. 1995 merit raises for catering staff are expected to average around 3.5%.

Management, Pizza Hut (U.K.) Ltd.

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