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Human Resources Management 12eGary Dessler Copyright ? 2011 Pearson Education, Inc. publishing as Prentice Hall 11–* Compensating professional employees, like engineers and scientists, presents unique problems. Analytical jobs like these emphasize creativity and problem solving, compensable factors not easily compared or measured. Determining professional compensation presents another question—how is “performance” to be defined and measured? Human Resources Management 12eGary Dessler Copyright ? 2011 Pearson Education, Inc. publishing as Prentice Hall 11–* Competency-based pay means the company pays for the employee’s range, depth, and types of skills and knowledge, rather than for the job title he or she holds. Experts variously call this competency-, knowledge-, or skill-based pay. Competency-based pay ties the worker’s pay to his or her competencies—pay is more person oriented. Employees here are paid based on what they know or can do—even if, at the moment, they don’t have to do it. Traditional pay plans may backfire if a high-performance work system (HPWS) is the goal. HPWS employees must be enthusiastic about learning and moving among other jobs. Human Resources Management 12eGary Dessler Copyright ? 2011 Pearson Education, Inc. publishing as Prentice Hall 11–* Competency-based pay ties the worker’s pay to his or her competencies—pay is more person oriented. Employees here are paid based on what they know or can do—even if, at the moment, they don’t have to do it. Traditional pay plans may backfire if a high-performance work system (HPWS) is the goal. HPWS employees must be enthusiastic about learning and moving among other jobs. Paying for competencies encourages employees to develop the competencies the companies require to achieve their strategic aims. Paying for measurable and influence-able competencies provides a focus for the employer’s performance management process. Human Resources Management 12eGary Dessler Copyright ? 2011 Pearson Education, I
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