Abstract

The burgeoning literature concerning merit pay in the public sector primarily focuses on themes such as its ability to improve performance, implementation problems in merit pay system maintenance, and a much more limited review of how merit pay should be integrated with salary structure. There are no studies of merit pay and salary structure, however, that compare experiences across local, state and federal government. Compensation specialists from all 50 states were surveyed to determine current practices in the area of pay structure and merit pay systems. Results indicate that many states are having difficulty in effectively integrating structure and merit pay.

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