What is a feature of the Merit Pay Model's pay range?

In the Merit Pay Model, the pay range typically grows with inflation to ensure that employees' compensation remains competitive and fair in relation to the cost of living. As inflation rises, it is crucial for organizations to adjust their salary ranges to preserve the purchasing power of their employees. This growth reflects an organization's understanding of the economic environment and its responsibility to attract and retain talent. By periodically reviewing and updating pay ranges, organizations are able to align their compensation strategy with current market conditions and inflationary pressures, which contributes to employee satisfaction and motivation.

In contrast, a decreasing range with inflation would not be sustainable or fair to employees, and a fixed range would not accommodate changing economic conditions. Likewise, solely determining the range by management would not consider external market factors or employee performance, which are essential aspects of the Merit Pay Model.