Person-Focused Pay Case Study

After examining the advantages and disadvantages of the person-focused pay system, if Holly Turner, Mitron's human resources director, decides to proceed with implementing this system, I would recommend that she terminate the team-based pay system, as both incentive plans would be very costly and begin implementing the aforementioned system by: (1) define the knowledge, skills, and competencies need for each position by mapping out and identifying knowledge and skills and levels necessary to successful complete the targeted job or duty (Zaim.2007). Not only must the requirements and specific competencies be described, but if varying levels of complexity and application exist, they must have clear differentiations. For Mitron, this would mean thoroughly researching the specifics of each …show more content…
Employees must master a skill block to receive before receiving pay increases. Additionally, price levels for each skill blocks must be determined. The employees’ compensation, based on the knowledge, skill(s), and competencies attained, should be clearly defined. For example, I am currently employed by the federal government and each year when it is time for performance evaluations employees are rewarded based on the knowledge, competencies, and skills attained through the year. Additionally, the different levels of compensation have sublevels or pay steps within it and classes. These levels go from development to full performance range, with compensations differing with each class, range, and step. (3) Implement training. Prepare a training plan that includes the duration, training content and applications, and form a budget for training expenses. Additionally, recertification of training should be performed yearly or quarterly, depending upon how the fast market changes. Provide said training opportunities to employees and monitoring their development. (4) Certification of skills