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THIS IS FOR A COMPENSATION AND BENEFITS CLASS: Today, with merit pay at around 2.5% of base salary, it has become just about a cost of living...

THIS IS FOR A COMPENSATION AND BENEFITS CLASS: Today, with merit pay at around 2.5% of base salary, it has become just about a cost of living adjustment rather than a true motivational payment. How can you motivate your top performers with a 3% vs. 2% wage increase? Could these be one of the limitations of merit pay that is making it less effective as motivational lever? Please answer in 225 words or less and cite url or references used for class discussion.

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