merit-based pay

Skill-determined wages

Merit-based pay is compensation tied to performance rather than tenure or fixed salary scales.

Employees who exceed expectations earn more; those who underperform earn less.

The system aims to reward productivity and motivate achievement, though critics argue it can be subjective or breed unhealthy competition: The company shifted to merit-based pay, which pleased top performers but worried everyone else.

Related

pay raise · deserving · achievement awards · commissions · appraisal · overtime pay · 360-degree feedback · incentive pay · carrot and stick · equitable treatment · goal-setting · top performer · equal opportunity · stock options · pay transparency · raise · earnings · hustle

Opposites
compensation criteria

merit-based paycost-of-living adjustments

Wage hikes offsetting inflation

pay grades

individualism vs. collectivism in compensation

merit-based paypay equality

Fair compensation regardless of identity

pay parity · guaranteed income · living wage

Family

base, merit, meritorious, meritocracy

Familiarity
Top 500,000
Profile
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