Person Focused Pay Essay

In today’s society, employees are often told that they must perform tasks beyond those specified in their job description. Pay systems that claim to be essential for achieving competitive advantages in the global environments include those who support continuous learning and improvement, participation, flexibility, and partnerships within the organization. Person-focused pay systems provide promise, which is an element in which Holly is attempting to achieve. The logic that supports this type of approach is that structures based on differences in individuals skills or competencies are willing to be more flexible and encourage agility.

With that being said, a person-focused pay system that is designed well has the potential to enhance motivation, increase employee commitment, and improve the satisfaction of employees due to the opportunity to promote autonomy and skill variety. The current state of Mitron Computers does not offer an incentive for the technicians to further their development of skills, which in turn creates an issue when the skilled technicians were unavailable, while either fulfilling other orders or simply not at work. Also, the …show more content…
When determining skill-based structures, there must be a link between pay and the knowledge, skills, and abilities that a person acquires that is relevant to the position. In doing so, the wage is attached to the person versus in a competency-based plan where employees are paid for the job to which they are assigned, regardless of the skills they possess. For employees, the two main benefits of the person-focused pay system are job security and job enrichment. When speaking of job security, the employees are more knowledgeable and skilled which presents a valuable asset to the company. Now with job enrichment, the job design is structured in a way that creates interesting work environments that are primarily