A merit increase is a salary raise granted to an employee for outstanding work performance or achievements. Eligibility for a merit increase is based on a company’s budget, internal criteria, merit metrics system, and the employee’s value in the job market.

What are the objectives of compensation management?

The objectives of compensation management are to attract, engage, and retain employees through competitive compensation plans that align with the company budget, corresponding job-market, and government regulations.

What is a performance review?

A Performance review is an in-depth assessment that managers conduct to gauge employee progress, strengths, and weaknesses, to help improve their productivity.