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Importance of Merit Pay in Business

Table of Contents

Introduction
Measurable team Goals
Rewards for Team Members for Achieving the Goals
Importance of Goals
References

Introduction

Merit pay is a sort of remuneration used by businesses to reward high-performing staff with continuing bonuses. This performance-based compensation system rewards for employees who execute their tasks efficiently based on easily measurable criteria. Even though the method is most commonly employed in government civil service, it has primarily been applied in many organizational settings to improve the companys overall performance. The development of the merit pay plan encompasses the entire firm by instilling a desire for presentation improvement in every department. The organizations team, which is its most valuable asset, tends to put in more effort to ensure they gain the benefits of merit pay.

Measurable team Goals

Notably, in the organization, a team is defined as a group of members dependent on one another, striving for interchangeable goals and sharing expected accomplishments. Measurable goals can be quantified and recorded to track progress or success. Attainable goals are realistic and necessitate those employees have the necessary tools or resources to attain them. Relevant goals are in line with the firms mission and will propel the organization ahead. As a result, while designing a merit pay plan, focus on some of the teams measurable goals. When creating a merit pay plan based on quantifiable goals, I will consider enhancing skills, improving communication, decreasing turnover, reducing clutter, and improving customer service delivery.

Rewards for Team Members for Achieving the Goals

Goal	Amount of reward (Actual dollar/percentage)	How the goal is measured	Promised time between achievement and payment of reward
Obtaining hygiene in the healthcare organization	$450 per employee	Clinical officers will investigate the level of hygiene employed in the organization	The time for the achievement of the goal is 5 months and the reward is given after results are processed.
Customer satisfaction in 3 consecutive months	$350 per employee	How much time is spend addressing the customers issue	The reward is given after 3 months when the results are received.
Reduced unfilled appointments	$250 per team member	The relevance of the goal must be identified	Measurements are evaluated quarterly and paid out on the next pay check.

I suggest that employees get merit pay for meeting or exceeding their targets in my organization. A bonus on top of their income will assist them in progress and reaching the organizations next objective goal. Employees are motivated when rewarded, and they work as a team to achieve a common objective. In this situation, if a goal of obtaining the best hygiene in the healthcare facility is established, each employee must work hard to keep the organizations atmosphere clean and tidy for the patients. The ultimate product should be paid for in an agreed-upon manner at the outset. For example, if an organizations objective goal were to maintain customer satisfaction for three consecutive months, the incentive would be $350. This is the exact amount that each employee should be paid if they maintain client satisfaction for three months in a row. Another rewarded objective attained is fewer unfilled appointments; improvements in appointment filling will result in a reward at the end of a specific time. The award will be granted when the findings have been examined, the three months have been finished, and the received results.

Importance of Goals

Measurable goals are important in healthcare organizations because they define the companys mission, aid in corporate growth, and meet financial objectives. Setting precise organizational goals can also assist a company in measuring its progress and determining which tasks must be addressed to accomplish those business goals. However, the dollar amount and timing are considered the most motivators because by allocating a specific amount of dollars to a specific, measurable goal, the team will be much more motivated. Thus, they will put in more effort to ensure they improve their performance within the time frame set for achieving the dollar as a merit pay (Rodriguez & Walters, 2017). However, the chart provided in the rubric explains the organizations team decisions. The chart uses percentages to express the organizations success rate, with the higher the percentage of the measurable target indicating that performance has improved within the time frame specified, and therefore the award is increased. Nonetheless, the reward is also time-based because the longer the performance increase is documented, the bigger the rewards.

References

Rodriguez, J., & Walters, K. (2017). The importance of training and development in employee performance and evaluation. World Wide Journal of Multidisciplinary Research and Development, 3(10), 206-212.

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