- Published: October 31, 2021
- Updated: October 31, 2021
- University / College: Swansea University
- Level: Master's
- Language: English
- Downloads: 18
Debate Employees in any organization should get salary increase on merit. This should be evaluated based on the employees’ performance. However, centrally to this, employees over the years continue to get a merit increase regardless of whether their performance is recommendable or not. This is attributed to the fact that employers and managers find it much more convenient to offer the merit increase by distributing it evenly to all employees to avoid misunderstandings and conflict in the workplace. In a bid to escape the conflicts, employers and managers end up being unfair to the top achievers who get a small increase compared to their performance.
One of the hardest parts is to give the bad news to an employee who is not receiving an increment. In order to effectively deal with these managers should be taken through train by undertaking role-playing exercises to boost their communication skills. However, this can be dealt with by ensuring that the news does not surprise anyone in the company. This can only be achieved by making sure that that organization continually reminds the employees the rise will only be given based on performance and that it is not automatic to all employees.
The managers should also frequently communicate the performance of the employees though out the year. In addition, employees need to understand the consequences if they do not perform as expected. This can be included in the employees’ handbook that they are not entitled to a merit increment if they do not meet the expectations. This sends a message that the organization is taking seriously everyone’s performance. Managers should be equipped with adequate skills to communicate to the employees the definition of what good performance is and what unacceptable performance is. They should be able to show the connection that exist between pay increment, performance, and how to deal with the tough questions that may arise from employees who do not receive salary increment.
A manager can explore other alternatives in giving the increment. Some employees are promising. Instead of totally denying them the merit increment a manager may consider delaying it to give them a chance to turn around their performance. Another option is to offer lump sum payments in place of a base salary increment. This makes it appear like a bonus instead of a salary rise. it does not affect salary increment or hourly wages. It also stretch merit budgets while at the same time slowing salary growth this should however not be misused.
Whether merits has lost its importance to the work place or not remains a controversy.. The concerns that are associated with this system of compensation is that managers fear that if they point out the top achievers and reward them, they risk losing most of the average achievers who are the majority as such they end up following the merit pay system which is not attached to merits at all. In the end, they end up being unfair to the top achievers who end up being under rewarded. However, each organization should take and develop a compensation program that will best reward the top performers. Making payments based on performance will help increase the productivity of the employees as well as attract quality talent in the organization, as top-performers will see the reward of their effort. Nevertheless, this system should give employees a second chance to prove their merit. The merit pay should also be done in lump payment in order to differentiate it from their work payment.