HR Tackles Wage Compression with Aggressive Merit Pay Program
An HR manager has introduced an aggressive merit pay program to tackle wage compression. The program rewards employees based on individual job performance and contributions, with larger increases for high-performing, long-term staff. Pay compression occurs when employees receive similar wages regardless of their experience, skills, or seniority. To correct this, the new program offers bigger pay hikes to top performers with more tenure. The HR manager is using digital payroll solutions to ensure accurate and fair adjustments. Additionally, global payroll services are employed to maintain uniform and competitive pay across different employee groups, boosting morale and productivity. The merit pay program follows best practices: clear performance criteria, objective measurement, a structured increase process, employee communication, and regular analysis and adjustments. The aggressive merit pay program aims to address pay compression by rewarding high-performing, long-term employees more generously. The HR manager's use of digital payroll solutions and global payroll services ensures fairness and competitiveness, fostering a more motivated and productive workforce.
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