Each has advantages and disadvantages. Job-Based Pay Models Job-based pay models are familiar to most people. In this model, management identifies a job by a name that identifies the primary tasks to be performed "floor supervisor," "clerk-typist," "machine operator" and assigns a pay scale to that job, which reflects the estimated education and experience needed to perform the job.
Job-based compensation structure, or job-based pay, is the most traditional type of compensation system in which pay is set on the basis of the job itself. Employees are remunerated on the basis of the jobs they are currently performing. Job-based compensation is in contrast to skill-based pay, which awards employees on the basis of their skill and knowledge level.
Job-based compensation structure has several advantages despite being touted as an outdated compensation structure. Emphasis on Specialization and Seniority Job-based compensation emphasizes job specialization and seniority.
Job specialization refers to the depth of job-related knowledge, experience and expertise an employee brings to a task. Individual employees are specialists in their designated tasks and are rewarded according to performance.
Job-based compensation structure rewards employee seniority and compensates them on the basis of length of service. This compensation structure assumes that an employee becomes more valuable to an organization with time.
Employee Promotions and Pay Raises Job-based compensation motivates employees to perform better and thus move up through organizational ranks over time. Employees receive instant pay increases as their job performance improves or their job changes.
Criteria for a pay raise is fairly straightforward, and employees are aware that improved performance leads to higher pay grades.
Video of the Day Brought to you by Techwalla Brought to you by Techwalla Easy to Administer In a job-based compensation structure, the job itself becomes the unit of determining base pay. Human resource professionals establish minimum and maximum pay amounts for each job and compensate employees based on their performance.
Employee job evaluation determines employee performance. This structure is easy to administer because it focuses on allocating pay systematically and ensuring that the most important jobs are paid more.
Stable and Predictable According to Brian Towers in "The Handbook of Employee Relations," job-based compensation structures are stable and predictable since they delineate and map clear-cut job and pay progressions.
The system, according to the author, is unlikely to cause de-motivation, disruption and discontent among employees.
Manufacturing firms and assembly lines typically pay their employees on the basis of job-based performance. Job Based Pay About the Author Natasha Gilani has been a writer sincewith work appearing in various online publications. She is also a member of the Canadian Writers Association.
Gilani holds a Master of Business Administration in finance and an honors Bachelor of Science in information technology from the University of Peshawar, Pakistan.Person-Based Evaluation.
A person-based evaluation is specific to each individual employee. It takes into consideration the knowledge, skills and abilities the employee possesses upon hire and learns in the course of the rating period.
Person-Based Pay Structures essay writing service, custom Person-Based Pay Structures papers, term papers, free Person-Based Pay Structures samples, research papers, help. Differences between Skill Based Pay System and Job Based Pay System.
In the skills based pay system, the reward is attracted by skills that have been . Skill-based pay is a person-based and not a job-based, system. It rewards a person for what he/she, rather than the job, is worth. Job worth is reflected in a basic rate of pay for minimum skills, but pay progression is directly linked to skills acquisition (rather than to general pay increases applicable to all).
Pay based on depth and breadth of skills and abilities a person acquires that are relevant to the work Different pay for same jobs Pay individuals for skills THEY HAVE, not necessarily exact match to skills required by job. Person-Based Pay Structures essay writing service, custom Person-Based Pay Structures papers, term papers, free Person-Based Pay Structures samples, research papers, help.
Differences between Skill Based Pay System and Job Based Pay System. In the skills based pay system, the reward is attracted by skills that have been accumulated by an. Pay for Value. In a job-based pay structure, you essentially get paid for the value of the work you perform for the company.
This gives your compensation a more tangible quality than a skill-based structure where a supervisor must assess the value of the skills and qualities you bring to the table.