Person Focused Pay Essay

Many of the employers feel as if the hourly labor cost, training coast and the overhead cost for the company will show an increase in the overhead cost to run the organization. The company will have to look at what will impact the hourly cost also. Hourly labor cost will often increase due to the fact greater skills should translate into higher into higher pay levels for the majority of the workers within the company. When dealing with the person-focused pay system, training is a very important component part, companies that have a job- based programs training cost are usually higher. Another disadvantage of a person a person-focused pay system is that it may now mix well with the existing incentive pay system that is already being followed …show more content…
Another disadvantage for the person-focused is that the training programs very high in price, and these systems pay raises to all of the employees that complete the training that is provided. This can create many problems for the company. These types of programs also require that the employees take on the price of the training while they are at a base pay (Martocchio,2013). The employee will also have to attend the training while they are on their job and this means that the training will have to be done during the regular work hours. Finally, companies will have to be very patient, due to the fact that it could take some time before they see the investment of the training. There also could be several months before any of the skills that they have learned and can apply the skill and knowledge to their job. Training programs are not made to anticipate all of the problems that the employees may face while they are performing a job or task (Martocchio, 2013). The employer believes in ideals of training and developing “pay the person” is the concept for many companies and has now being developed in organizations (Hickman,