Published by:
Harvard Business Publishing
Length: 2 pages
Share a link:
https://casecent.re/p/44991
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
A recent survey of large companies found that while only 8% currently used competency-based pay systems, 78% said they had plans to implement such systems within the next two years. In the past, employees were rewarded for their efforts; in the future, they will be compensated for their results. Determining the set of competencies required by different positions is a monumental task, and it requires input from all levels of an organization. Despite the fear and anxiety a switch to competencies may involve, this system gives managers a legitimate way to pay people who contribute beyond the bounds of the job. It can also teach managers about how well they are doing their own jobs.
About
Abstract
A recent survey of large companies found that while only 8% currently used competency-based pay systems, 78% said they had plans to implement such systems within the next two years. In the past, employees were rewarded for their efforts; in the future, they will be compensated for their results. Determining the set of competencies required by different positions is a monumental task, and it requires input from all levels of an organization. Despite the fear and anxiety a switch to competencies may involve, this system gives managers a legitimate way to pay people who contribute beyond the bounds of the job. It can also teach managers about how well they are doing their own jobs.