Human Resources -- Skill-Based Pay…Has it Caught on?
The skill-based pay structure sharply differs from the traditional job-based pay structure. Compensating an employee according to skill set, skill-based pay focuses on developing multi-skilled employees with an eye toward greater flexibility and productivity. Presenting both benefits and drawbacks, skill-based pay has developed to become one of the dominant compensation systems.
Compare and contrast a skill-based pay structure with a traditional job-based pay structure.
A traditional job-based pay structure compensates an employee according to the job he/she holds, sometimes with modifications dependent on the market (Mitra, Gupta, & Shaw, 2011). In contrast, a skill-based pay structure compensates an employee according to the employee's skill set: an employee with a greater skill set will receive higher compensation than another employee performing the same job but having a lesser skill set (Mitra, Gupta, & Shaw, 2011, p. 55). One strategic goal of the skill-based pay system is the development of multi-skilled employees who can perform a variety of tasks (Byers & Rue, n.d.). This system focuses on 3 categories of skills: horizontal, consisting of broadening skills for a range of tasks; vertical, consisting of obtaining higher-level skills; and depth, consisting of high-level specialized skills for the employee's existing job (de Silva, n.d., p. 12). This somewhat radical departure from the traditional system is based on the concept that multi-skilled employees increase organizational flexibility by enabling the organization to more easily handle "workflow irregularities" (Mitra, Gupta, & Shaw, 2011) and ultimately enhance the productivity of the organization (Mitra, Gupta, & Shaw, 2011). Furthermore, greater job satisfaction, lower absenteeism and lower employee turnover are expected to flow from skill-based pay, as the organization is encouraging and investing...
Skills-Based Pay Lawler and Ledford (1987) argued twenty-six years ago that skill-based pay was going to become an increasingly popular concept in compensation management. Ledford and Heneman (2011) define skill-based pay as "a compensation system that rewards employees with additional pay in exchange for formal certification of the employee's mastery of skills, knowledge and/or competencies." The authors juxtapose this against a "job-based pay system," defined as a system where employees are
These figures dwarfed what other big businesses paid for discriminatory practices. These businesses included Texaco, Inc.; Shoney's, Inc., Winn-Dixie, Stores, Inc.; and CSX Transportation, Inc. Critics saw Coca-Cola's settlement as signaling a major breakthrough among big businesses as coming to terms with diversity in the workplace (King). Because the company has been a leader in many areas, these critics regarded it as setting an example of greater openness to
What management does still exists must maintain an open door policy, so as to help lower level employees transition and communicate concerns but again managers are likely to have a clear idea that this is a behavioral manner of influencing actions. (Tyler, 1997, p. 323) Though the transition to flat organisation may benefit most organisations, it is still a transitional situation that requires special understanding of employee empowerment as well
Management Skills Required of a Security Manager Loss Prevention Skills Security managers' main responsibility is protecting corporate assets, including premises, finance, plant and personnel. Accidents are costly affairs -- damage occurs to property (premises and plant) as well as people (personnel). Further, the organization has to pay a worker who takes time off for recuperating from sickness or injury. Some injured employees might quit the job and their replacement requires funds
Fault: An Alternative to the Current Tort-Based System in England and Wales The United Kingdom statistics regarding claims THE NATIONAL HEALTH SYSTEM OBSTACLES TO DUE PROCESS THE CASE FOR REFORM THE REGULATORY ENVIRONMENT THE RISING COST OF LITIGATION LORD WOOLF'S REFORMS MORE COST CONTROLS THE UNITED STATES PAUL'S PULLOUT THE INSURANCE INDUSTRY TORT REFORM IN AMERICA FLEEING PHYSICIANS STATISTICS FOR ERROR, INJURY AND DEATH THE CALL FOR REFORM IN 2003: A FAMILIAR REFRAIN THE UNITED STATES SITUATION, IN SUMMARY NEW ZEALAND CASE STUDIES THE SWEDISH SCHEME COMPARISON: WHICH SYSTEM IS
Communication Skills to Give a Presentation It has recently been assigned that I will be responsible to present the quarterly sales information at an in-person meeting to a group of stakeholders, managers, sales people, and customers. Before beginning the presentation, it is important to understand how to design the speech to be most effective to the audience. When preparing a speech, the speaker must be aware of their audience by understanding
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now