1. When awarding additional pay for merit (good performance), how important is the perceived fairness from the employee's perspective regarding the amount of the pay? Please explain your response by reference to the concepts discussed in the course.
Merit pay, also known as pay-for-performance, is defined as a raise in pay based on a set of criteria set by the employer. This usually involves the employer conducting a review meeting with the employee to discuss the employee's work performance during a certain time period. Merit pay is a matter between an employer and an employee (or the employee's representative). The Fair Labor Standards Act (FLSA) does not require or address the issue of merit pay. DOL (2016).
Merit pay progrms reward employees with permanent increases to base pay according to differences in job performance. Martocchio (2015). …show more content…
First, they want to be paid fairly because most employee's are ethical and feel acceptance of that pay has to be fair. Second, most do not feel right if they get a merit increase and someone else doesn't who performed at the same standards as they did. Third, they want to not have any challenges in the workforce because they received merit pay and someone else did not wno performed at that same level. It can cause all sorts of problems amongst the employees. Friends can become enemies. The culture can change. The employee's behaviors can change. It is never a good idea for any employee to accept a merit pay unless it is fair. They should be ethical enough to step up and say