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These components include; salary, Lump sum adjustments, merit pay, performance feeds, bonus incentives, and Employee Stock Ownership Plan (ESOP).
According to HR Guide, merit pay is an incentive plan implemented on an institution wide basis to give all employees an equal opportunity for consideration, regardless of funding source...
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The merit increase program is implemented when funds are designated for that purpose by the institution's administration, dependent upon the availability of funds and other constraints. The merit plan has many advantages and disadvantages. One advantages is that it allows employers to differentiate pay given to high performers as well as allow the employer to satisfactorily reward an employee for accomplishing a task that might not be repeated...
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