Companieshave structured compensation strategies for their employees suchstrategies include the job-based strategy and the person basedstrategy. This paper is going to focus on person based reward system,why it is necessary for the company to adopt it, and the advantagesand the disadvantages the strategies may have on both the employerand the employee. In conclusion, I will relate it to the Christianview and evaluate the strategy, in line with my current workplace.
strategy
Aperson focused strategy is a reward system which takes intoconsideration the competency, knowledge, and skills of the employeeto determine his pay. It is necessary for companies to adopt suchmoves in order to direct employees` behavior towards the objects. Thestrategy also supports the effective flow of work. In addition, italso enhances innovations within the company hence increasedcompetition in the global market (Milkkovich, Newman, and Gerhart,2010)
Skillbased programs tend to concentrate more on specialists andgeneralists in certain areas. Knowledge pay focuses on the person’sknowledge in a particular area. However, competency tends to take abroad outlook incorporating knowledge, skills and behavioral traitsof the person.
Theapproach makes the employee enriched and interested at work. Theemployer is advantaged as he is able to cut down on staffing and thelevel of productivity within the company rises (Milkkovich et al.,2010). Nevertheless, the employer incurs costs in terms of trainingthe staff and maintaining it.
Conclusion
Inconclusion, it is clear that the approach is religious-based as itaddresses the rewards that come along with using of given gifts.Since the approach has not been implemented at my workplace, I willadvise my employers to take it and experience the results.
Reference
Milkkovich,G., Newman, J and Gerhart, B. (2010). Compensation.(10thed). McGraw-Hill Education