How to Conduct a Merit Increase Study to Examine Gender and Race/Ethnicity Differences

Many organizations grant employees a salary increase on an annual basis. When associated with employee performance, these increases are often called merit increases. Given laws prohibiting discrimination in employment decisions based on race/ethnicity and gender, among other protected classes, organizations may be concerned about evidence of gender or race/ethnicity differences in the merit increase process. This paper will explain how an employer can evaluate such potential gender and race/ethnicity differences.