OUT: MERIT PAY IN: STRATEGIC REWARDS If employees think of merit pay as an entitlement, how can it motivate them to work harder or better? If a reward program is not linked to your business strategy, how can you expect to get results?

These might seem like simple questions, yet most businesses have not wrestled with the obvious answers, according to a new survey from Watson Wyatt Worldwide in St. Louis. The report, "Strategic Rewards: Improving Business Performance Through People," an

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