Merit Pay at Carroll University - Winners Take All Essay

5075 Words Aug 15th, 2012 21 Pages
[Type the company name] | Merit Pay at Carroll Universiy | Should the Winners Take All? | | | 11/19/2010 |


Performance related pay in academia, in particular merit pay, is often a source of controversy. As cited in Value-Related Issues in a Departmental Merit Pay, a faculty-designed merit pay plan is defined as “a process that may produce a pay increase for university faculty who perform a variety of worthwhile work activities according to the practices, policies, criteria and values of certain stakeholders.” (Hanshaw, 2004, p. 57) This process is open to interpretation and therefore may be applied differently by each university and even more specifically by each department. Not all departments
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Merit pay systems “can be designed to encourage collaboration. Collaboration may be one aspect of performance that gets rewarded.” (Solmon and Podgursky, 2000) Ultimately, if merit pay is to become a trusted and respected process, it is crucial to have a multi-level valuing process that is transparent and balanced with regards to faculty and administrative input. The designers must come up with a bold, innovative merit pay plan that is cost-effective, fair and, most importantly, aligned to the objectives of the university. The current system of thirds at Carroll University is ineffective. A more aggressive plan to reward the merit pool to the top 20 to 25 percent must be implemented.
To tie pay to performance, performance must be measurable, related to the goals of the organization, be achievable by the employee, and be well communicated. The measurement of performance must be definable into a continuum explaining low to high. The ranges devised in the continuum must be broken down further into different levels, as to assign values for those levels of performance. These measures must be tied to every position and pay range. These measures need to include input from the university, participants and those with additional specific knowledge of the department. Merit pay should be given to the top 25 percent and spread through all classifications. Those chosen for the 25 percent group would have participated in specialized criteria

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