As I said, where merit can be accurately determined, I have no problem with merit pay. In your example, order takers that take 25% more orders than their piers should be paid more. But what about the order takers that only take in 10%, 5%, or 3% more than average should they be paid more? I say no, because the method being used to measure merit is not that accurate at accessing the true value of the employee. For example the person that only brings in 3% above average may spend more time building a good relationship with customers or may do extra jobs in the office, or whatever.Flopper,
I get where you're coming from, but on the flipside, how is giving everyone the same pay raise fair to the person who does 25% more work or brings in 25% more orders? I worked on both sides of the union when i was with UPS, and as both an employee and a manager it pissed me off to see people that did as little as the could get away with being paid just as much as the best workers. There wasn't any incentive to work harder, because you're raise was determined by contract. On the other hand, there was a lot of incentive to ride the clock and stretch 8 hours worth of work into 10 hours so that you could rack up some overtime.
In many businesses if not most, there is no objective way to measure the merit of all employees. For about 8 years I managed about 25 people. My employer was a strict believer in merit pay. Bonuses and pay raises all depending on employee evaluation. I could always pick out the top 5 and bottom 5. For the rest, it was just a guess and I’m sure I was wrong about as often as I was right. The result was poor employee moral and high turnover. I think if I had been able to pay a large bonus to just the top 5 employees and a small bonus to remainder of the department, it would have solved a lot of problems and the business would have benefited.
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