When pay ranges were first introduced, it was common to use “steps” or increments granted based on the successful completion of another year with the employer. This is sometimes referred to as “passing the foggy mirror test” – all the employee has to do is to stay alive and show up for work to get a step each year.

But when Pay for Performance concepts was introduced over 50 years ago, steps were then eliminated from pay ranges in many organizations, open pay ranges became the norm and future pay increases were then to be linked to performance. However, lately, there’s been a lot of issues with Pay for Performance and is being called into question. 

What organizations need is a way to recognize employee growth in their abilities to perform their job. This type of growth that we’re talking about is long-term and it’s a steady accumulation of skills and knowledge or experience over time. Listen to Birches Group's Managing Partner, Gary McGillicuddy, as he talks about an innovative alternative to Merit Pay and using time as a proxy to inform pay increases. Community Skills uses accumulated skills and knowledge of your staff to inform pay increases guaranteeing clarity, transparency, and equity in your organization. To see a demo of our Community Skills tool, email [email protected] or check out our website www.birchesgroup.com.

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