Merit Pay: A Strategic Approach to Linking Pay to Performance

The world of work has changed considerably since the second edition of Merit Pay was published. Advances in technology, changes in job design, alternate forms of work processes, and differences in workforce demographics form many of these changes. In addition, compensation (in general) and merit pay (in particular) also have experienced changes based on these trends and events. The third edition addresses how these occurrences have introduced new theory and research impacting merit pay plans.

While much has changed in the compensation world since the second edition, merit pay remains popular – with perhaps as many as 90% of U.S. firms using it despite its controversial nature. The timeliness of this edition could not be better, occurring on the heels of major events and trends. Readers will benefit from over 230 new references added to the third edition. Moreover, this edition provides study questions and case studies to increase understanding of concepts, principles, and applications. Finally, in selected areas of the book, we added a new feature - current events in merit pay. These events explore innovative and often provocative subjects, aiming to leave readers with meaningful ideas to reflect upon.

Merit Pay is essential reading for undergraduate and graduate students studying compensation administration, as well as professionals working in pay administration, human resource management, industrial and organizational psychology, and labor economics.

Steven E. Williams is an adjunct professor at National University, USA, where he has taught courses in industrial and organizational psychology, human resource management, and statistics.

Jon M. Werner is an Emeritus Professor of Management at the University of Wisconsin-Whitewater, USA. He obtained his Ph.D. in Organizational Behavior from Michigan State University.

Robert L. Heneman is a Professor of Management, retired, at the Ohio State University, USA. He is author of numerous books and publications concerning compensation, with a focus on merit pay.