Person Focused Pay Essay

“Person-focused pay plans generally reward employees for acquiring job-related competencies, knowledge, or skills rather than demonstrating successful job performance” (Martocchio, 2013, p. 100).
One of the advantages of a person- focused pay system is that employer obtain a huge benefit from it in the sense that every employee becomes more valuable because they are acquiring more knowledge about the job as a result, their productivity increases, they can fill in for any coworker that is out of work for vacation, or for any other reason. . (Martocchio, 2013).
Also, employees get to know almost the whole process of their job from the beginning to the end of it. Not only that employees are more valuable to the organization where they work, but also, the employers can still be able to produce even though they can be facing some turnovers. Martocchio, 2013).

For instance, according to the case, building a customized computer can involve between 10 and 18 different step. If each employee can do two steps, it would require 5 to 9 employees to finish that product. However, with the person-focused pay system in place, each employee can learn maybe 4 or five steps which in turn, reduce the number of employees to complete the job in half. (Martocchio, 2013).
With the new knowledge that employees are obtaining, they can even rotate job within the same department, so that each member of the group has a detailed idea about his/her co-worker job and can easily identify and look for possible defects that they would not be able to look for if they have not been doing the job. (Martocchio,