Merit-based pay links pay to performance to reward individual contributions for employees and to provide encouragement for employees to perform at their best. While there are positive considerations for implementing this type of pay program, there are also drawbacks depending on the business environment.

• Identify at least three ways that a merit-based pay system can support a business environment and at least three ways that a merit-based system can detract from a business environment.
• Provide solutions to mitigate or combat the detractions or potential concerns related to implementing a merit-based pay system within a business environment.
• Share your experiences in your narrative.