Advantages And Disadvantages Of Person Focused Pay Programs

Each employee will be paid based on their capabilities rather than on the characteristics of their job. This will provide an incentive for employees to develop their skills and move into other roles.

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

Training of General Motors’ employees on their job specifications will improve their productivity. Ofshore trainings in China and Japan are recommended . This will allow the corporation’s manufacturing engineers to learn new efficient production technologies of Japan and China in making cheaper and highly effiecient cars. Motivational incentives such as team building sessions, delegation of duties, self-managed leadership styles, and monetary rewards will boost their commitment to the organization. The combined effect of training and motivation will necesitate restructuring of a pay roll while leveraging on improved productivity of highly productive employees.

Feedback was provided to assist you in maximizing points earned on this final paper. To properly complete this final project, you must include the feedback provided to apply to this final paper. The purpose of this assignment is to apply your critical thinking skills in completing the employee process from job analysis to compensation based on performance. You are now going to make compensation decisions.

The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).

Base pay will be determined according to the value of the skills and competencies an employee has acquired on the production floor, there will be the incentive for skill development as employees base pay will increase as their skill proficiencies enlarge. This will also create mobility between jobs in the organization as many members will be proficient in numerous jobs.

The first lesson we learnt was the importance of treating employees fairly, especially in terms of wages. Employees who are content and treated fairly are productive and will evidently drive the bottom line of the company. Their productivity will be high, knowing their wage is reflective of their work and they feel valued in the company. Not only did employees experience pay dissatisfaction if they perceived their pay as unfair, they were also less motivated to achieve the organization’s goals. (HRM 212) In Quarter 6, we increased the wages for Level 3,4, and 5 workers. However, we received feedback that notified us that our Level 1 workers

Changing to a pay-for-performance pay system always has several implications. The most important of these are discussed in the succeeding paragraphs.

Additionally, if the employee produces more, the overall productivity of the firm will increase as well. The system is also cost effective, as the firm is only paying for what is produced. Therefore, the firm saves if an employee’s production numbers are low, as the employee only get paid for what is produced. If an employee knows that his or her pay is based on how much is produced, then he or she would be less likely to waste time conversing with co-worker or lollygagging. When you look at the big picture, all of these advantages are intertwined. For example, I work for the Department of Safety as a Driver’s License Examiner for five years. During that time and currently, customers complain about the slothfulness of the examiners and the long wait times. However, examiners (including myself) also complained about the work ethics of their co-workers. It was also stated by one examiner, during a meeting, that he was compensated by the hour not per customer, when I complained about the slowness of some examiners. If this system was implemented, it would motivate, otherwise less motivated employees, to be more productive, as they would be compensated base on how many customers they assist per day. This would increase productivity, thereby, decreasing complaints and customer wait times, save the state funds, and employees would be less apt to waste time

Basing our structure on jobs clearly defines what it takes for an employee to rise within the organization and provides legal foundation as to why pay differs between individuals. We wouldn’t want to do a person based structure because that would pay employees for the highest level of skill they have achieved regardless of the work they perform. Therefore, person-based structures can become costly and complex. Additionally, pay differences in a person-based structure would be less job-related and legally defensible as well as create more equity issues between employees. In phase 2 we will describe how many pay levels to divide each structure into after seeing the results of our market analysis. However, we believe based on our point distributions in there will be roughly five. Furthermore, we will also clarify in phase 2 the pay

Pay for performance systems have further been proven to have two advantages for organizations: attracting more high-quality employees and motivating employees to exert more effort at their jobs. (Gordon, Kaswin) This paper will show the positive benefits of performance pay as

When the current owner purchased Dexter Russell 48 years ago it was one of many companies throughout New England using a piecework pay structure to pay its employees. Over nearly five decades the vast majority of these companies have veered away from this system. The specific reasons for this conversion vary with the company. You can argue that some of these companies suffered after the change. Despite the overwhelming trend to change from this payment structure, Dexter is still going strong as a piecework facility today.

Some organizations are unwilling to show their reward systems and pay policies (Lawler, 1995). Many Human Resources professionals believe gender pay gaps to be resolvable through the monitoring of pay levels and communication (Report on Salary Surveys).Greater pay transparency has been a great benefit to the board, employees and managers as they now know what is happening across the business and they are able to confidently justify their actions (Commission Policy Report).All market-related supplements are recorded and reviewed separately from basic salary to ensure openness and transparency. Regular research market rates within the various labor markets in which they operate is undertaken improving transparency would also help to improve talent development, as employees would be able to see what they could earn if they wanted to move to another division and upgrade their skill set. (Commission Policy Report).

In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.

Today, competition between the businesses is extremely high thus companies need to find ways to be competitive. Organizations prepare the best market strategy to increase the company performance and the ways to keep their employee motivation on the highest level to perform well within the competition. At that time, several incentive pay programs play an important role for every organization to perform well within the competition.