What happens when technical or scientific employees reach the top of their rate range?” As discussed in Chapter 13, one answer is “broadbanding,” which widens the rate range to accommodate senior or top performers.” Another approach is maturity curoes, which are adjustments to the top of the rate range for selected jobs. Employ~ are rated on productivity and experience. Outstanding contributors ~ assigned to the top curve, as shown in Good but less outstanding performers are placed on the curve next to the top. Through this technique, high-performing professionals continue to be rewarded for their efforts above the top of their jobs’ rate ranges without being required to seek a management position or switch jobs to increase their earnings.
As discussed in Chapter 13, merit raises are pay increases given after an evaluation of performance. These raises are usually decided by the employee’s immediate supervisor, often in conjunction with superiors. Although merit raises reward above-average performance, they are seldom tied to any specific payout standard. This lack of clear standards causes some companies to rely on a management by objectives (MBO) approach that sets standards against which merit