Infographic Merit Pay Mythology

Merit increases, in many instances, are unevenly distributed cost-of-living increases, couched in the language of performance rewards, some compensation experts say. Most merit-increase budgets have been flat for years, barely meeting inflation rates and bearing no relationship to productivity growth or profitability trends. The pay increases are not enough to motivate employees—but they are enough to irritate them, one expert says.

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Illustration by Gonzalo Hernandez

Workforce Management, November 3, 2008, p. 33Subscribe Now!