Asked by EZEKIEL LABRADOR on Apr 28, 2024
Verified
What are two disadvantages of merit pay?
Merit Pay
A compensation strategy that rewards employees based on their performance and achievements, rather than on seniority or hours worked.
Disadvantages
The negative or less favorable aspects of a situation, decision, or condition.
- Explore the criticisms and disadvantages of merit pay systems.
Verified Answer
LP
Leywes PierreMay 03, 2024
Final Answer :
One major disadvantage of merit pay is that the performance measures used are usually subjective. A second disadvantage of merit pay is that the reward is typically an increase in salary, which can be expensive for employers.
Learning Objectives
- Explore the criticisms and disadvantages of merit pay systems.