A major criticism of merit pay programs is that the differential in pay between high performers and mediocre or even poor performers is not significant enough to influence employee behavior or attitudes.

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The most basic criticism is that merit pay does not really exist. High performers it is argued are not paid significantly more than mediocre or even poor performers in most cases. Critics of merit pay point out that this difference is probably not significant enough to influence employee behaviors or attitudes.

A Major Criticism of Merit Pay Programs Is That the Differential