t" way in your situation or company, and what works in one place may not be best in another. So, you need to decide based on what you want to create, your circumstancesManagers and human resource professionals often struggle with the linking of performance management and performance appraisal to performance pay or merit pay. It makes intuitive sense to reward the most valuable employees, but the practice is not a simple one, since it is common to create undesired and unanticipated side effects regardless of how you go about the task of using performance appraisals to determine raises. Here's some guidance, adapted from Performance Management - A Briefcase Book, by Robert Bacal (McGraw-Hill)

First, there is no "best" way to link pay or salary to employee performance, and no best way to implement merit pay. There is only a "best" way in your situation or company, and what works in one place may not be best in another. So, you need to decide based on what you want to create, your circumstances,

intuitive sense to reward the most valuable employees, but the practice is not a simple one, since it is common to create undesired and unanticipated side effects regardless of how you go about the task of using performance appraisals to determine raises. Here's some guidance, adapted from Performance Management - A Briefcase Book, by Robert Bacal (McGraw-Hill)

First, there is no "best" way to link pay or salary to employee performance, and no best way to implement merit pay. There is only a "best" way in your situation or company, and what works in one place may not be best in another. So, you need to decide based on what you want to create, your circumstances

less of how you go about the task of using performance appraisals to determine raises. Here's some guidance, adapted from Performance Management - A Briefcase Book, by Robert Bacal (McGraw-Hill)

First, there is no "best" way to link pay or salary to employee performance, and no best way to implement merit pay. There is only a "best" way in your situation or company, and what works in one place may not be best in another. So, you need to decide based on what you want to create, your circumstances

obert Bacal (McGraw-Hill)

First, there is no "best" way to link pay or salary to employee performance, and no best way to implement merit pay. There is only a "best" way in your situation or company, and what works in one place may not be best in another. So, you need to decide based on what you want to create, your circumstances

t" way in your situation or company, and what works in one place may not be best in another. So, you need to decide based on what you want to create, your circumstances, and the culture of your company. However, here's an approach.

Acknowledge that no pay for performance system is perfect. Nor is there a perfect way of accurately assessing the value of employee contributions. So, is there a "best way"?

If you want to tie pay to performance, here's how to do it. You make it a part of the performance planning process. You establish the criteria for a pay increase when you set objectives and standards. So, at the beginning of the year, each employee should know what he or she needs to achieve in order to receive the pay increase or bonus. You don't tie pay to ratings or rankings. you make sure the criteria are as objective