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Competencies are those underlying work behaviors that are required to complete a job.
These behaviors are:
• Defined as pay structures that associate wages to the complexity or extensiveness of job related KSAs acquired by an individual.
• Skill based pay plans are normally associated with blue-collar jobs.
• Focused in the manufacturing industry and has a strong presence on assembly lines due to the particular nature of the work involved.
• Benefit of skill based pay structures is that you can hire fewer workers and assign them to various areas depending on where more people are needed and at what time.
• Employee’s income is based on the number of skills they have and not on whether they utilize all these skills on a regular basis
Core
Competencies
Competency
Sets
To obtain an increase in salary they are required to pursue further education on top of the basic bachelor’s degree that is necessary to get hired.
For example, pay structures for teachers
Competency
Indicators
Competency -
Based Pay
Salary goes up upon the accumulation of different skills
Allows workers to be shifted to various jobs in the business in which they are accredited depending on where there is a shortage of labour
For example, technicians
• Personal characteristics – Characteristics to succeed in the complex and ambiguous job situations
• Visionary –They might be expressed as possessing a global perspective, taking initiatives in moving the organization in a new directions, and being able to articulate the implications for the organization of trends in the marketplace.
• Organization specific – Whatever reflects the company’s values, cultures and strategic intent.
Do you think they should receive the same payment?
o Do competencies support the organizational
internal structure?
o Does it treat employees fairly?
o Does it direct employees behavior toward the
goals and objectives of the company?
o Are different competencies linked with levels of
pay?
H
Aligns with Policy and Strategy
Illustrates a clear relation between employee skills and company goals and strategy
Supports and Maintains Workflow
Employees can be easily assigned
to areas that need more support
when they need it
Equal Opportunity
Pay increase depends on each employee's
Individual responsible for their progression in the organization
Motivates Behavior Toward Organization Objectives
With a broader skill base employees are able to function & excel under decreased supervision
What is the objective of the plan?
What information should be collected?
What methods should be used to determine and certify skills?
Who should be involved?
How useful are the results for pay purposes?