Difference between job based pay structure and person based pay structure

An establishment is a distinct physical place of business rather than an entire business or enterprise consisting of several places of business. Can an employer pay me less because I'm a woman? After all, compensation is the reason that the majority of us work, and it a quietly discussed topic where we often go through the motions explaining.

For example, if an employer provides extra compensation to employees who are the head of household,i. Thus a bias exists against the broadening of skills.

What is the new job classification system intended to accomplish? In some circumstances, physically separate places of business may be treated as one establishment. Our goal is to enable employees and their managers to have meaningful discussions about their career at Purdue; the job family structure will allow individuals to understand where their current job falls within the established structure, and make informed decisions about their careers and development goals.

The critical issue is what skills are required for the job, not what skills the individual employees may have. It is simpler than a person based system as more work is required to define knowledge, skills and competencies required for a person based pay structure.

What criteria is used to determine whether or not an employer has committed pay or compensation discrimination? In other cases, opposition is motivated by a dislike of the consequences. His cost center is Sales Training in the general ledger.

Equal Pay Act - requires that man and women be given equal pay for equal work in the same establishment. Based on this estimate, it would take an extra 47 days of work for women to earn what men did in Employers may not reduce wages of either sex to equalize pay between men and women.

Again, for instance, if you want someone whose job is in grade 2 to fill in for a time in a job that Broadbanding evolved because organizations want to flatten their hierarchies and move decision-making closer to the point where necessity and knowledge exist in organizations.

The good news is that your HRMS makes this process easier by helping you manage relationships between organizational structure, jobs, positions, and employees.

Skill Based Pay Structures Versus Job Based Pay Structures

An employee can reap the benefits of short-term success, but perhaps not comply with the long-term ideals of the organisation. For example, an administrative position at a software company might include receptionists, office assistants and executive assistants.

Job-based Vs Person-based Pay Structures Job Based Pay Structures A job based pay structure is a structure of salary payments that is built on compensable factors determined by the job. Employers revise job descriptions and conduct job analyses according to business needs that call for improved skill sets and qualifications.

These are called competency-based pay structure, skills-based pay structure or knowledge based pay structure.

Skill Based Pay Structures Versus Job Based Pay Structures

How do employers determine compensation levels, and what consequences can these decisions have for the organization? How many different job families will there be? The salesforce may not see this as a fair means of assessment. Qualifications Salary differences are also attributed to internal factors such as revisions to job descriptions or job analyses that justify salary modifications.

With know-how to talk about comp with anyone.

Internal & External Factors for Salary Differences

As indicated elsewhere, consistency in structure and comparability are essential for system maintenance and usability. When earnings cease to be based purely on results, employers must take other factors into account, such as customer service and best practice.

And your HRMS has the power to make your life easier by maintaining your organizational charts and structure based on how you input data. Pay Bands are also regional as well.

Competency Based Pay

Macroscopic factors such as an economic downturn may also make employees appear to be performing to a lower standard independent of actual performance.job security, improvements in the quality of worklife, and higher organizational commitment.3 Unfortunately, to date, only limited information about pay-for-knowledge systems has been available to assess the validity of these claims.

To be sure, much of the information known about these systems comes from case reports, anec-dotes, and speculation. The person based pay plan offers job enrichment and variety, and potentially flexibility in scheduling.

It can also allow a person to remain with one organization and learn the organization. Jan 29,  · Option 5 and 6 shows that the system of paying people based on a hierarchy of jobs (job based pay) may sound good in concept but is actually a quick fix.

In real life it would seem more practical to pay base on abilities, capacities (person based pay) and what the person is required to do. The techniques of establishing pay structure are based on Job analysis, job evaluation is called as person- based approach. Skill based structures link pay to the depth and breadth of the skills, abilities and knowledge which the person acquires that is relevant to the work.

_____ is the perceived fairness of the relation between what a person does and what the person receives. A. distributive justice.

B. procedural justice D. to develop a pay structure that is based on market rates. Incentive-based pay reflects: A. the content of the job. B. the market for a particular job.

How to Calculate Salary Range Percentiles

Specifically analyze significant differences between the company's internal values for jobs & market's value for the same jobs Compa-Ratios--> indexes the competitiveness of internal pay rates based on midpoints; shows competitivness of their companies' pay rates.

Difference between job based pay structure and person based pay structure
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