Skill-Based Pay Structure
The process of creating the pay structure depends on whether the pay is job-based, competency-based, or skill-based.
The pay based on the results of a competency-based evaluation considers the level of competencies required for successful performance. In this method, the level of competencies values the job and the pay is based on the use of competence but not the results. The competency-based pay structure focuses on individuals. Salaries and raises are based on how well employees acquire the core competencies needed for their positions.
The skill-based pay is based on the skills of employees but not their job. So, like the competency-based pay, this method also focuses on individuals and their skills. "Workers are compensated for …show more content…
The employees in the company are paid based on their grades. A new employee usually starts with the first level in the pay grade. After working in the company in the same position for some period of time (usually one year in our company), an employee gets increase within the same pay grade. If an employee reached the highest level in the pay grade or move to another position then the employee moves up to the next pay grade level. For example, when I got promotion - I was moved up to the next grade.
This method helps avoid the discrimination issues as male and female employees working in the same position are paid equally.
Working as the financial and administrative officer in the company, I know that using this method of payment it is easier to budget and plan payroll increases each year.
It was very interesting for me to read The Compensation In The Context Of Globalization in our book. Working for an American company in my country, our salary is, of course, higher than the wages in the government institutions and local private companies but, I guess, much less than Deloitte employees get in the US. I think it is fair as the cost of living in Turkmenistan, my home country, is lower than in the
The pay based on the results of a competency-based evaluation considers the level of competencies required for successful performance. In this method, the level of competencies values the job and the pay is based on the use of competence but not the results. The competency-based pay structure focuses on individuals. Salaries and raises are based on how well employees acquire the core competencies needed for their positions.
The skill-based pay is based on the skills of employees but not their job. So, like the competency-based pay, this method also focuses on individuals and their skills. "Workers are compensated for …show more content…
The employees in the company are paid based on their grades. A new employee usually starts with the first level in the pay grade. After working in the company in the same position for some period of time (usually one year in our company), an employee gets increase within the same pay grade. If an employee reached the highest level in the pay grade or move to another position then the employee moves up to the next pay grade level. For example, when I got promotion - I was moved up to the next grade.
This method helps avoid the discrimination issues as male and female employees working in the same position are paid equally.
Working as the financial and administrative officer in the company, I know that using this method of payment it is easier to budget and plan payroll increases each year.
It was very interesting for me to read The Compensation In The Context Of Globalization in our book. Working for an American company in my country, our salary is, of course, higher than the wages in the government institutions and local private companies but, I guess, much less than Deloitte employees get in the US. I think it is fair as the cost of living in Turkmenistan, my home country, is lower than in the