Criticisms on Dunlops Theory
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Merit pay is used to reward successful performance and is based on the amount of funds released by the Finance Department. Larger merit increases are awarded to those who consistently exceed performance standards. Increases are not granted to employees whose performance has been rated unsatisfactory overall. In accordance with LKY Group of Companies guidelines, supervisors recommend whether an employee should receive any increase based on annual performance review and the amount of increase appropriate for the performance results.
The following factors are the basis for awarding merit pay to employees.
1. The performance as reported in the annual performance review.
2. The appropriate pay level within the range considering the performance and performance of others in the range.
3. Pay increase funds available.
4. Recommendations of supervisors, approved by executive officers
Employee performance is formally reviewed at least once each year. The focus of the review is to determine in what range the employee met the planned performance and standards for the position. Only employees in a career position are eligible for a merit increase. The employee must be employed with at least six months of continuous service before the merit award date to be considered for a merit increase.
An employee whose pay is at the maximum of the salary range may not be granted an increase that would cause the base salary to exceed the maximum of the range for that position.
Each year, the CEO and executive officers of Human Resources and Finance determine the pool of merit increase funds available. The objectives of the compensation program and financial resources available are considered in the decision making process.
Merit increases require two levels of review, immediate supervisor and director. Employees are to be notified in writing of their final merit increase as soon as possible once all merit increases for the year have been approved by the executive officer
Merit pay is used to reward successful performance and is based on the amount of funds released by the Finance Department. Larger merit increases are awarded to those who consistently exceed performance standards. Increases are not granted to employees whose performance has been rated unsatisfactory overall. In accordance with LKY Group of Companies guidelines, supervisors recommend whether an employee should receive any increase based on annual performance review and the amount of increase appropriate for the performance results.
The following factors are the basis for awarding merit pay to employees.
1. The performance as reported in the annual performance review.
2. The appropriate pay level within the range considering the performance and performance of others in the range.
3. Pay increase funds available.
4. Recommendations of supervisors, approved by executive officers
Employee performance is formally reviewed at least once each year. The focus of the review is to determine in what range the employee met the planned performance and standards for the position. Only employees in a career position are eligible for a merit increase. The employee must be employed with at least six months of continuous service before the merit award date to be considered for a merit increase.
An employee whose pay is at the maximum of the salary range may not be granted an increase that would cause the base salary to exceed the maximum of the range for that position.
Each year, the CEO and executive officers of Human Resources and Finance determine the pool of merit increase funds available. The objectives of the compensation program and financial resources available are considered in the decision making process.
Merit increases require two levels of review, immediate supervisor and director. Employees are to be notified in writing of their final merit increase as soon as possible once all merit increases for the year have been approved by the executive officer