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Merit Pay (merit + pay)
Selected AbstractsWhen Changing from Merit Pay to Variable/Bonus Pay: What Do Employees Want?PERFORMANCE IMPROVEMENT QUARTERLY, Issue 4 2004Jeremy B. Fox ABSTRACT This study examines potential responses to a change in an employee reward system from permanent merit pay increases to one-time bonus payments. Removing long term risks associated with escalating pay is an increasingly common compensation strategy. Often overlooked, however, are employee perceptions of reward fairness under such conditions of change. Receiving lump sum payments in lieu of permanent merit pay increase may de-motivate employees. There has been little or no research conducted on this topic. In this study, using samples of practicing HR managers and university students, an equity questionnaire gathered data on the perceived equivalence between a permanent merit pay increase and what might be demanded by employees as a single payment in its replacement. An analysis of the data collected indicate an approximate 1:2 ratio is needed, such that a proposed lump-sum payment of $2400 would be perceived as a fair replacement for a permanent merit pay allocation of $1200 per year. Our research indicates that this 1:2 ratio holds for both high and low job satisfaction levels. [source] Undermining or reframing collective bargaining?HUMAN RESOURCE MANAGEMENT JOURNAL, Issue 4 2008Variable pay in two sectors compared Although it is widely presumed that variable payments systems (VPS) such as individual merit and profit-related pay are corrosive of collective bargaining, the actual relationship between the two remains little explored. Drawing on company case studies from retail banking and machinery and equipment, this article finds that collective bargaining can variously be reconfigured , as over individual merit pay in the banks; extended to cover local bonus arrangements, evident in instances in both sectors; or lose its purchase on a significant proportion of earnings , as with management-determined profit-related bonus in both sectors. In terms of the implications for collective bargaining, much therefore depends on the type of VPS. [source] Merit pay preferences among public sector employeesHUMAN RESOURCE MANAGEMENT JOURNAL, Issue 4 2001Michelle Brown Organisations have choices about methods of pay, and employee pay adjustment preferences are an important consideration in this decision-making process. Of particular organisational interest currently are pay systems that seek to link increases with individual performance, usually referred to as merit pay. Researchers have shown that pay adjustment systems that are incompatible with employee preferences can be costly for organisations, and have identified a range of demographic factors that predict support for merit adjustments. This article extends this line of research by investigating the impact of a performance appraisal system and a range of situational factors on the level of support for merit pay in a large public sector research organisation in Australia. The study finds that higher levels of perceived job security are associated with support for merit pay, while good promotional opportunities are associated with lower levels of support. Those who saw the outcomes of the current performance appraisal system as fair were unlikely to support merit pay. [source] | ||||||||||