tthrm21payforperformance1_10

Typicalmeritraisesrangefrom26

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Unformatted text preview: 1 Quartile st Performance Rating Outstanding Consistently Exceeds Standards Meets Standards Does Not Fully Meet Standards Or Below 8­9 % 2nd Quartile 6­7% 3rd Quartile 4­5% 4th Quartile 3­4% 6­7% 4­5% 3­4% 2­3% 4­5% 3­4% 2­3% ­­­­­­­ 0­2% ­­­­­­­ ­­­­­­­ ­­­­­­­ Advantages of merit matrix based on performance and position in range: Reduces the tendency to perpetuate tenure­based pay inequities Likely to be deemed “fair” by the work force because over time, employees with similar performance in same salary grade will tend to be paid comparably Pay and Motivation Pay and Motivation Evidence suggests that merit raises of 10­15% motivate changes in behavior. Typical merit raises range from 2­6% Rewards are more motivating if: They are timely They are public rather than secret They are scarce rather than common Motivation Through Merit Motivation Through Merit Raises Develop employee confidence and trust in performance appraisal. Establish job­related performance criteria. Separate merit pa...
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