CHAPTER 5 Person focused pay Flashcards
Person focused pay
rewards employees for acquiring job-related knowledge, skills, and competencies. Encourages continuous learning and skill development, thereby increasing job security and flexibility.
2 types of person focused pay are
- pay for knowledge
2.skill-based pay
3.competency-based pay
pay for knowledge
rewards managerial, service, or professional employees for increasing their knowledge applicable to their work
skill based pay
often used for employees performing physical work, providing pay increases based on mastering new job skills
type of knowledge and skills
1.horizontal
2.vertical
horizontal (knowledge) skills
skills at the same level of
responsibility or difficulty (similar skills/knowledge)
vertical (knowledge) skills
skills that are traditionally
considered supervisory
depth of skills
level of expertise or specialization an
employee possesses
competency-based pay
focuses on an employees ability to apply knowledge and skills over time to perform job duties successfully
US DOL general competency model
tier 1 : personal effectiveness competencies
tier 2: academic competencies
tier3:workplace competencies
tier4:industry wide technical competencies
Advantages of person-focused pay (4)
- job enrichment
2.increased job security
3.enhanced productivity
4.staffing flexability
disadvantages of person-focused pay (3)
1.higher cost
2.complex implemantation
3.conflicts with incentive pay
models of person focused pay (4)
- stair step model
2.skill blocks model
3.job point accrual method
4.cross-departmental model
stairstep model
skills are arranged in a stair-step pattern, and employees must master one skill before moving to the next. Skills progressively become more complex.
skill blocks model
skills do not build on each other allowing employees to learn and apply both horizontal and vertical skills independently.
job point accrual model
encourages employees to acquire skills from different job families, allowing for greater job flexibility
cross-departmental model
trains employees across various departments to ensure that they can perform in different areas when necessary, offering flexibility but often increasing costs often used for staffing issues
job based pay
compensates employees for performing specific tasks and responsibilities in their current role. Includes seniority pay, merit pay, and incentive pay. Based on compensable factors
person focused pay (diff from jbp)
compensates employees based on their potential to contribute to the organization through skill acquisition, offering flexibility, but often increasing costs.
