Advantages Of Person Focused Pay

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Person focused pay plans reward employees for gaining job related, knowledge, skills, and other competencies that enhance the employees job performance. Person focused pay is based on rewarding employees for the future. A reason an employer might chose person focused pay, is technological innovation. The skills needed for technological changes in society, really need and demand a variety of new job skills from employees. Rewarding employees, for gaining these new technological skills will help your company meet the market demand for technological innovation and motivate employees to want to continue to educate themselves on new skills. There are a variety of advantages to person focused pay plans. Providing employees with job enrichment and job security. They become motivated through job enrichment, because this model allows for more intrinsic rewards for the employee by creating an interesting work environment. The employee’s also see a positive correlation between the new skills they are learning and being rewarded continuing their education. Increased employee commitment is an advantage of a person focused pay plan. This is an advantage, because with increased job motivation, and high employee …show more content…

Job based pay can include seniority and merit pay. In a job based pay system, workers will receive pay defined for each job. This type of pay structure is easy for administration to understand. Seniority pay means that employees receive an automatic raise over a period of time they perform their jobs. Merit pay is when an employer pays compensation over time that is determined by one’s job performance. Incentive pay is when an employee is financially rewarded for achieving a work goal or objective. A company may adopt this structure, because it is easy for those administrating it to understand and easy for them to define the structure of the compensation

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