There is a positive relationship between merit raises and employee motivation.
Bonuses and raises frequently only give employees short-term motivation. The majority of people are not motivated merely by their ability to earn money to go to work. However, the manner in which raises are given frequently affects their capacity to encourage employees. On the other hand, raises do frequently motivate workers. Their effectiveness is also impacted by other elements, some of which are unrelated to money. Raises can be a powerful motivation for workers, but they must be understood as a reward for superior performance by the recipients. Better performance must be directly correlated with increased remuneration.
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