The merit system is a method that organizations use to determine employee promotions and compensation based on their performance, skills, and qualifications. Some synonyms for the merit system include the performance-based system, qualifications-based system, skill-based system, and competency-based system. Other terms used to describe the process include the talent management system, performance evaluation system, and employee assessment system. The merit system is essential for organizations as it ensures that employees are rewarded for their hard work and dedication. By using synonyms for the merit system, companies can better communicate their approach to employee assessments, which can improve employee morale and productivity in the workplace.