Tess C. Taylor, PHR, The HR Writer, PayScale
When it comes to raising employee morale while simultaneously boosting productivity at work, one employee at a time, a strategic way to compensate high performance employees is through merit raises. These often unscheduled pay raises or bonuses are generally part of an overall effort to reward and recognize employees for their hard work. Merit raises can be managed either through a discretionary fund that each department head doles out, or by arranging for merit increases to correspond with employee performance records.
Either way, the question remains – do employees actually appreciate merit raises or are there alternative ways to say “thanks” for a job well done?