Pay Rise Allocation

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[...] However, this method has been criticized for promoting inequality and bias in rewarding efforts. While the manager's effort is reflected in the overall performance of the kiosk, the kiosk team plays a vital role in contributing to the total sales. Thus, it is not entirely the manager's effort that results in increased sales or meeting sales targets. The individual contribution of each team member counts in the outcome. Merit pay that focuses on rewarding only the managers might bring about employee relationship problems (Andrews, 2021) and decrease the morale of kiosk team members. [...]

[...] Pay Rise Allocation A merit pay increase, unlike a pay rise, takes into consideration the performance of the employees, and only well-performing workers are eligible for a merit increase. As such, there is a need for a structured system for allocating merit increases that ensures the managers are consistently rewarded for their performance. If merit increase is the basis for a pay rise, then all managers should not enjoy the same rate of pay increase since some are performing better than others. [...]

[...] Retrieved from http://journal.netsed.net/index.php/sedi/article/view/80 Noorazem, N. A., Md Sabri, S., & Mat Nazir, E. N. (2021). The effects of reward system on employee performance. Jurnal Intelek, 16(1), 40-51. https://myjms.mohe.gov.my/index.php/intelek Rosenkrantz, A. B., Duszak Jr, R., Golding, L. P., & Nicola, G. N. (2020). The alternative payment model pathway to radiologists' success in the Merit-based Incentive Payment System. Journal of the American College of Radiology, 17(4), 525-533. [...]

[...] In conclusion, merit pay increases are a commonly used method for allocating pay increases. I take into consideration the performance of an employee, which is a factor of different merits for assessing performance. Other factors, such as employees' financial problems, are not considered when calculating merit increases. This method of allocating pay increases is, however, associated with problems such as favouritism and discouraging employee morale. Other methods like team bonuses can be used to reward exceptional work, especially where the performance of a business unit depends on team effort. [...]

[...] Dave Daniels got a pay rise of since sales targets always met targets. Dave's merit increase is set higher than Bob's since Daves's kiosk was located inside a mall where most stores were struggling, meaning chances of reduced foot traffic. Dave is, therefore, more likely to have done a more excellent job than Bob, whose customers conveniently walked in. Carolyn's performance met targets in addition to being an exceptional manager to her teams, and thus, she deserved a merit increase of 3.5%. [...]