A good merit raise is a positive signal to high performers designed to

Question

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A merit raise is given to recognize and reward high performers for their hard work and contribution to the organization. It is meant to encourage them to continue performing at a high level in the future. It is a positive signal that their efforts are appreciated and valued, which can boost employee morale and motivation. Merit raises are not meant to discourage creativity and innovation, encourage early retirement, or discourage the use of health benefits or asking for a raise.

A Good Merit Raise Is a Positive Signal to High