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http://hrweb.mit.edu/compensation/annual-salary-review/indiv...

Determining Individual Merit Increases
MIT is committed to retaining its many talented employees. Studies show that one of the most effective ways to retain top performers is to reward them based on job performance.

Managers can reward performance most effectively by carefully distributing their merit pool. *Merit increases* can be used to recognize an employee's performance, contributions, and past year's achievements.

In considering merit increases, you may find it helpful to visit:

Performance Reviews
Annual Salary Review Quick Cards
Lump Sum Merit Payments