Benefits Of A Person Focused Pay

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.

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.

Which type of pay plan rewards employees for the range, depth, and types of abilities they are capable of applying productively to their job?

Individual incentive pay plans reward employees for meeting one or a combination of performance standards (e.g. productivity, safety, or attendance) set by the employer (Martocchio. 2013). Piece- rate pay is one of four individual incentive plans offered in the employment industry. Employers have two options to select from when choosing this incentive plan. The first option is compensating the employee hourly for each piece over the given production number. The second option is compensating employees based on established subjective (quality) and objective (quantity) performance standards. In both options the employee is, essentially, being compensated for the work he or she does and not what could have been completed (Gibbons. 1987).  Motivation,

Although, person-focused pay programs present many advantages, there are some highly significant disadvantages to person focused pay programs. The main disadvantages are person-focused pay programs can encompass increase in hourly labor, training, and overhead costs, the system's many not connect and interlock well with existing incentive pay systems, they depend on well-designed training programs, and because companies have a problem with determining the monetary value of skills and knowledge (Martocchio, 2013).

Person-focused pay is a new way companies are paying employees. Joseph J. Martocchio writes, “Person-focused pay plans, or competency based pay, generally reward employees for acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performance.” (Martocchio, 2015) Basically it is where companies pay employees for gaining skills through classes. At Target stores, they will pay so much toward tuition at school as long as you can show it will improve on your skills on the job. Prior to my departure at Walmart, Walmart implemented a person-focused pay structured where the employees were able to receive an increase in pay if they attended a course and passed. In this paper, I will discuss some advantages

For many years people have wondered if college athletes should be paid. The NCAA rule is that you cannot take money from coaches or promise to pay. For many years, these athletes have been having a lot of attention to college sports. However they are in school and you don’t see high school kids being paid to play sports. But they also have practice every day for however long it is then they have classes.

2001). Three Key Research & Development employees have left within the past three months and there are an increasing number of employee complaints about compensation and decreased satisfaction. Identifying and understanding an individuals value system is an important step to deal with the employees dissatisfaction with compensation and to define adequate compensation. Riordan can develop their rewards system by interpersonal intelligence; analyzing their employee's characteristics; Intelligence Aptitudes Knowledge Temperament Preferences Expectations. Once these attributes are understood, Riordan HRM can develop a rewards system that is best suited for the company and employees.

Performance based pay plans are becoming increasingly utilized by companies across all industries as they try to improve their productivity while limiting their costs and remaining competitive. An effective performance based plan allows an employer to distribute some of the financial risk and rewards of the business to the employees. The employer can keep base pay compensation below the market average while still offering employees the opportunity to make more money than what is offered at the high end of the market pay range. This leaves the employer less vulnerable to fluctuations in the economic environment by lowering the fixed cost of wages (Miller, 2011).

It is not worth having to go through all the trouble in order to get paid. Is it really worth spending so much time on the things you have to do to get paid? NO! Plus not all students and families can afford to pay for their tuition. At the end these athletes could end up paying for their own tuition. A problem is that tuition and college expenses would not be deductible because the income level surpasses the IRS eligibility limit (Thelin). Basically if a student were to get a certain amount of money he will be paying for his tuition, room and board , out of state fees (if they’re from out of state) , plus taxes on top of that. At the end, the amount of money he or she is getting paid will end up at the same place, and equal out to the amount

To foster competitiveness and deliver better results, there is a program called STACK where employees are ranked based on the work done and their incentive is decided based on it. Better the rank, better the incentives.

A company which wishes to attract highly skilled employees would tend to follow which pay policy?

Actors and athlete have been getting paid a great amount of money.Maybe paid too much. “Successful TV stars get paid around $150,000 an episode told by “Hollywood Reporter”. The conflict with how many athletes get paid v.s. Soldiers, firefighters, Police officers ,etc.

When employees complete additional training to develop skills and knowledge that will translate into increased productivity and efficiency on the job (Martocchio, 2013). When an organization rewards its employees with higher pay or a bonus for attending training or acquiring a new skill set this is called person-focused pay. One advantage for person focused pay systems is oftentimes employees like having a versatility in their job tasks. Employees are more motivated when they can use the skills they have mastered to gain more autonomy within their positions. Most employers use person focused pay programs to increase the level of employee commitment and overall job satisfaction within an organization. Another advantage to person focused pay

An incentive pay program can reward employees who continue to produce superior work or encourage employees who already produce good work to best. Sometimes, use an incentive system when employees are lack of enthusiasm of getting down to work and improving things. If everyone in the same job classification gets the same pay, there is no real incentive to do an outstanding job (French, 1990). Various incentive plans used to motivate all employees such as production staff, sales staff, administrative staff and managerial and professional staff on an individual basis. To be improved employee work performance, the incentive pay programs need to be fairly matched with the employees’ expectation. Properly designed and maintained incentive pay program has the potential to increase employees’ productivity and work performance.