From the course: Human Resources: Compensation and Benefits for the US
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Person-based pay structures
From the course: Human Resources: Compensation and Benefits for the US
Person-based pay structures
- One day, a sign catches your eye while driving past an auto assembly plant. It reads, "Come work for us. The more you learn, the more you earn." Learning new skills, such as those at the auto assembly plant involving glass, upholstery, or paint, and being paid for that knowledge, is an intriguing proposition. This approach is a person-based structure. Person-based pay structures compensate individuals for all of the skills or competencies for which they've been certified, regardless of whether the work they're doing requires all or just a few of them. Most applications of skill-based pay have been in manufacturing. The benefit is the high degree of flexibility in assigning work that it provides the employer. To develop a skill-based plan, you need a way to describe, certify, and value the skills. First, you need to do a skill analysis. For example, what skills does a person need at each stage of assembly, finishing, and inspection? Then create skill blocks by grouping related…
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