Person Focused Pay Programs Essay

First of all, the four main types of person-focused pay programs are the stair-step model, skill-block model, cross-departmental model, and job-point accrual model. Under the stair-step model, each step represents positions from a certain job family, in which is different on the level of complexity. In addition, the number of skills needed to perform the job will have a bearing with this approach, as well as standards that must be set. The standards in which employees advance to the next level are primary and naturally, the skills required to advance are increased at each level or increment established.

Next, the skill-block model refers to those jobs that are grouped into one job model per family. With this approach, skills do not build upon each other as with the stair-step model, and employees do not progress to jobs that are increasingly more complex. The expected outcome is to emphasize the development of the depth of skills of employees, as well as their horizontal and vertical knowledge.

Equally important, cross-departmental, promotes staffing flexibility by training employees in one department, with the necessary critical skills to be able to perform at the same or higher level in another department, if needed. Now, some key benefits

Unlike the cross-departmental model, job-point accrual models encourage employees to acquire knowledge and learn skills that allow them to become more competitive with other companies. Also, the number of positions that employees are allowed to train are limited, due to the company not wanting employees skilled in all areas of the company. The creation of organizational flexibility, promotes the companies goals by assigning a greater point value on those skills that are of a concern to the company. In essence, the more points that an employee can accrue, the higher the level of