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Merit-Based Compensation System

What are some of the advantages/disadvantages of a merit-based compensation system?

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Merit-based compensation systems can be effective if monitored properly. The main advantage in this type of system is that it encourages employees to work harder, which leads the employees to being more productive. When employees are more productive, the company benefits because they are able to get more product out, sales go up, and net income increases. Merit-based pay is particularly ...

Solution Summary

This solution discusses monitoring and merit-based pay in 214 words with one reference.