Person Focused Pay Essay

The rapid changes in today’s marketplace has forced businesses to find new ways of compensating workers in order to keep up with the ever so changing marketplace (Zaim. 2007). Traditional forms of compensation cannot effectively meet the needs of today’s market. Therefore, businesses must adapt by finding new ways to remain competitive or maintain its competitive advantage. Person-focused pay system is a method businesses can used to remain competitive in today’s market, as this system rewards employees for attaining job-related competencies, knowledge, and skills versus the tradition method of rewarding employees, performance based (Martocchio. 2013. P100). Pay-for-knowledge (rewards managers, service or professional staff) and skill-based

The company has recently had delays with product completion when a team member is absent, as the technicians have complementary skills. Additionally, in fear of losing his or her team bonus, most technicians do not want to miss work to attend the training. The advantages of the person-focused pay system, if applied at Mitron are:
Motivated employees- compensating employees for attaining additional knowledge, skills, and competencies would motivate employees to attend training for their advancement;
Reduced staffing- as the employee learner(s) will be versed in higher-level steps of the building process, he or she would be able to complete the build in cases of unexpected absences or when other team members are engage in another build;
Increased employee flexibility- as employees are compensated for knowledge, skills, and competencies learned, employees will be more versatile and able to perform many jobs based on the skills learned;
Enhanced job performance- employees are more knowledgeable regarding the in-and-outs of the building process thus product quality and customer service improves, as the products will be completed in a timely manner;