Person Focused Pay System Essay

A person-focused pay system focuses on rewarding employees for “acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performance” (Martocchio, 2013). If Mitron implemented a person-focused pay system, it would be complete turn in the right direction for the company. There are several advantages to implementing a person-focused pay system at Mitron for both the employees and the employer. Advantages for the employees, a pay system of this type is self-motivating and will increase productivity, job security, and will create a more positive working environment (Bayley, 2006). The program will allow a more flexible work schedule as well as the flexibility within the job. The system allows the employees to work in a format that allows them to work more efficiently and plan …show more content…
In turn, this makes the team as a whole more efficient and productive (Martocchio, 2013). Since this program would create multi-skilled employees, the concern over unforeseen absenteeism would be decreased. The third advantage for employers is greater flexibility in staffing demands. Again since the technicians at Mitron would be trained in multiple. Currently, the process for building a computer, takes about 10 to 18 different steps completed by different technicians (Martocchio, 2013). Utilizing a person-focused system, the technicians will be properly compensated if they are cross-trained to learn the additional steps of the process. A person-focused pay system, with adequate training will help increase quality and the quantity of work because being aware of the entire process which will help the team identify production shortcuts (Martocchio, 2013). This will allow flexibility in scheduling and production if multi-skilled employees are able to take the lead on many of the