The difference between merit evaluations and performance-based evaluations lies in their focus and application within an organization. Merit evaluations are primarily concerned with awarding pay increases based on an employee's performance. This process begins with a proposed budget and involves managers assessing employee performance against specific metrics often aligned with company and team goals. The evaluations may include a range of performance metrics and can be influenced by factors like the employee's current pay rate and the company's budget for merit increases. The results of these evaluations directly influence salary increments, focusing on rewarding high-performing employees fairly across the company