Which type of jobs would be best suited for person-focused pay programs?

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Person-focused pay is based on an employee’s demonstrated mastery of a series of competencies that make them more valuable to the business. On the other hand, job-based pay compensates employees for the job they perform while also considering seniority, merit and incentive pay.

Which type of jobs would be best suited for person focused pay programs?

Which type of jobs would be best suited for person-focused pay programs? Jobs in manufacturing. Pay-for-knowledge, skill-based pay, and competency-based pay are forms of _____.

Why do companies use person focused pay plans?

The person focused pay plan allows employees to grow and motivates them to learn. Because a person can learn a job from beginning to end, it allows for them to become more involved in the task at hand, allows for accountability and can allow for lean processes.

Is skill-based pay the same as person focused pay?

Person-focused pay rewards employees for the promise of performance in the future; merit pay and incentive pay reward employees for promise fulfilled (job performance). Skill-based pay, a term used mostly for employees who do physical work, increases the workers’ pay as they master new skills.

What is the difference between person focused pay and incentive pay?

What is the difference between​ person-focused pay and incentive​ pay? Person-focused pay is for skill​ development, but incentive pay is​ one-time pay for the attainment of goals communicated in advance.

What is a person based pay system?

Person-based pay structures are simply payment systems whereby the employee is rewarded based on the person that he is at work and not the job that he does.

Who uses person focused pay?

Person-focused pay plans reward employees for acquiring job-related, knowledge, skills, or competencies rather than for demonstrating successful job performance.

Why do companies wish to use a person focused pay system and describe some of these pay models?

Person focused pay plans reward employees for gaining job related, knowledge, skills, and other competencies that enhance the employees job performance. They become motivated through job enrichment, because this model allows for more intrinsic rewards for the employee by creating an interesting work environment.

What are the two most important reasons for adopting person focused pay programs?

Advocates of person-focused pay programs offers two key reasons that firms seeking competitive advantage should adopt this form of compensation: technological innovation and increased global competition.

What is skill-based pay?

Skill-based pay refers to a pay system in which pay increases are linked to the number or depth of skills an employee acquires and applies and it is a means of developing broader and deeper skills among the workforce. Such increases are in addition to, and not in lieu of, general pay increases employees may receive.

What implication does person focused pay have for employees?

Person-focused pay programs represent important innovations in the compensation field. Person-focused pay systems imply that employees must move away from viewing pay as an entitlement. Instead, these systems treat compensation as a reward earned for acquiring and implementing job-relevant knowledge and skills.

What are individual incentive plans?

Individual incentive plans are based on meeting work-related performance standards, such as quality, productivity, customer satisfaction, safety, or attendance. They are most appropriate when: Performance can be measured objectively. Employees have control over the outcomes.

What is a person based pay structure?

Person-based pay structures are simply payment systems whereby the employee is rewarded based on the person that he is at work and not the job that he does. In short therefore, the salaries or the wages that are paid to the employee is determined to getting the best aspect of an individual that he or she can offer to the company.

What are skill based pay programs?

The phrase “skill-based pay” refers to programs where compensation is based on the skills of the employee, rather than that employee’s job, so it is a person-based approach rather than a job-based approach.

What is skill based pay system?

Skill-based pay. Skill-based pay is a salary system that determines an employee’s pay based on his or her knowledge, experience, education or specialized training.

https://www.youtube.com/watch?v=_q7dcHVkPTo

I was asked about designing an incentive plan. There are so many types of incentive plans to choose from. Incentive plans should be based upon organizational goals and objectives. When designing an incentive plan, HR and Managers should consider the following five keys factors:

1. Whether the plan should be based on group or individual employment performance
2. The level of risk employees will be willing to accept in their overall compensation package
3. Whether incentive pay should replace or complement traditional pay
4. The time horizon for goals-long term, short term or a combination
5. The criteria by which performance should be judged

For a plan to be successful, all five factors must be considered, but the most important one of the five is the criteria by which performance should be judged. HR professionals need to ensure that employees understand their criteria and that managers and supervisors understand how to judge performance. This goes back to ensuring that performance appraisals are created based upon a job analysis and those managers and supervisors are trained in administering the reviews, the review process and the review itself. There should be no grey areas in the managers understanding of the review or definitions in the review.  If an employee is to be judged as punctual, the supervisor must have a clear definition of what the word punctual means by company standards.

In order to meet the criteria for the incentive, employees need to have an understanding of the criteria needed to meet the incentive and be trained and developed in the criteria. An organization cannot expect its employees to meet criteria for incentives (or anything) if the organization does not train and develop the employee.  Training should actually be ongoing, and If an employee is weak in one of the criteria, additional coaching and exposure to situations/tools/ individuals to help them gain mastery of the criteria should be provided.  Too often, organizations leave employee training and development up to the employee, and too often, the employee cannot meet the standard because they do not have the tools or knowledge to develop. Employees will be more willing to accept risk in their compensation practices if they feel secure that their organization will provide them the necessary tools for development and success in the incentive criteria.

Not all organizations will have the same incentive plan, and not al jobs will be compatible with incentive plans. My favorite plan is not necessarily an incentive plan, but more of a pay plan. I like it because it inspires individuals to grow and develop within an organization and it allows for job security and a lower turn over than traditional pay plan.

My favorite pay plan is the person focused pay plan. Person focused pay programs are not for all organizations or all positions. The model implies that employees need to move away from viewing pay as an entitlement. Person focused pay programs treat compensation as a reward earned for acquiring and implementing job relevant knowledge and skills.  Advocates of the person focused pay program state there are two main reasons to choose this model:

The first reason for adopting the pay program is simple, in the age of technological innovation, some skills have become or are becoming obsolete. Jobs require new skills. For example, technology is currently taking over manual jobs – automobile industry/mechanic- where previously a mechanic needed good eye/hand coordination; mechanics now need to be able to utilize computerized diagnostic systems on top of having their eye/hand coordination.

The second reason they are good to adopt is due to increased global competition and the fact that it has forced companies to become more competitive. In order to have a competitive advantage, employers must give their employees leading edge skills and encourage employees to utilize these skills in the organization.

The person focused pay program has four models. The four models of person focused pay programs are:

• Stair Step Model – the steps on this model are actually different jobs from a specific job family. The jobs differ in complexity and a person can climb the stairwell by obtaining the necessary skills and knowledge. The skills build on one another/
• Skills Block Model – the skills block model operates in the same way as the stair step model, but the skills do not build on one another. The employee can progress quicker by learning the necessary skills and not necessarily in order. Employees can skip a level if they have the skills.
• Job point accrual model – this model encourages employees to develop skills and learn to perform jobs from the same job family
• Cross departmental model – encourages employees to learn the jobs within a department in able to assist during downtimes.

Person focused pay plans, as one ca see, encourage growth, not just of the employee but of the organization.  These programs reward employees on their potential to make positive contributions to the organization.  The person based pay plan offers job enrichment and variety, and potentially flexibility in scheduling. It can also allow a person to remain with one organization and learn the organization thoroughly.  According to job characteristics theory, employees are motivated to perform jobs that contain a higher degree of core characteristics. The person focused pay plan allows employees to grow and motivates them to learn. Because a person can learn a job from beginning to end, it allows for them to become more involved in the task at hand, allows for accountability and can allow for lean processes.