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By paying workers more, the company will have greater motivation to give their best. In the event the company aims are high enough, employees would like to go beyond what a person can perform with limited work. The main point is individual effort counts.<br><br>A second reason companies should use merit pay systems is since it promotes team effort. When workers feel as though they're a part of a team, they function better than if they feel like they are on their own. Because of this, companies can expect their employees to grow over the average.<br><br>Lastly, a merit system increases the total quality of office. It follows that office are far more organized, more efficient, and productive. Subsequently, the office is a better place to be. It's fewer dangers, and all of the workers will be prompted to do their tasks well. This is especially true in regards to civil service personnel.<br><br>A merit system provides employees with greater wages. There are two reasons why. 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You will not only have the ability to enhance the level of your employees' performance, but you will also see an gain in the total amount of happiness at work. It's a win-win situation for everyone.<br><br>Another significant argument against merit pay motivate employees to work harder is that it favoritism. Employers don't wish to be accused of favoring anybody because that can backfire on them. They'll get liable for any discriminatory actions taken against a worker. This may be prevented by making sure the system is reasonable.<br><br>A simple way to avoid favoritism is to make sure that everyone in the workplace is performing well. Otherwise, if someone is doing exceptionally well, why should that individual be rewarded? It's important to set a few criteria. Employees shouldn't be preferred over others simply since they are doing extremely well. 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