MMA

MMA in the context of human resources typically stands for “Merit Market Adjustment.” This term refers to a compensation strategy used by organizations to ensure that employees’ salaries are competitive with the market rates for similar positions. It is often implemented as part of a broader compensation review process, aimed at retaining talent and addressing any pay disparities.

The MMA involves analyzing external market data to determine whether an organization’s compensation levels are aligned with industry standards. When pay rates for certain roles are found to be below market value, the organization may make merit market adjustments to align salaries with those rates, thereby enhancing employee satisfaction and engagement.

Merit Market Adjustments are crucial during performance review periods, as they help reward high-performing employees while also adjusting pay based on market conditions. By focusing on maintaining competitive compensation, organizations can attract and retain a skilled workforce, ultimately contributing to their overall success.