2. Merit Pay Produces Pay Discrimination
A new and particularly compelling study indicates that even when women and minorities receive the same starting salaries and performance ratings for doing the same job under the same supervisor, their merit increases are smaller than those awarded to their white male counterparts.
erit 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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Workforce Management, November 3, 2008, p. 33
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Next Article: 2. Merit Pay Produces Pay Discrimination
A new and particularly compelling study indicates that even when women and minorities receive the same starting salaries and performance ratings for doing the same job under the same supervisor, their merit increases are smaller than those awarded to their white male counterparts.
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erit 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.
