A person$-$focused pay program, also known as an individual or merit$-$based pay system, is a compensation strategy that directly links an individual's pay to their performance, skills, and contributions within an organization. Unlike traditional pay structures that rely on factors such as job titles or seniority$,$ person$-$focused pay programs aim to recognize and reward employees based on their individual merit and accomplishments $($Martocchio$,2020).$ The advantages of such programs include the explicit recognition of individual performance, heightened motivation and engagement, the provision of clear career paths, the ability to attract and retain top talent, and the flexibility to tailor compensation to specific skills. However, these programs come with potential drawbacks. Implementing person$-$focused pay programs can lead to increased labor costs, and the subjectivity involved in evaluating individual performance may result in biases. Additionally, fostering a competitive work environment and the complexity of managing such programs pose challenges. The direct link between pay and performance may create pressure on employees to consistently deliver high$-$level results, potentially leading to stress and burnout. Therefore, organizations considering person$-$focused pay programs must carefully weigh these pros and cons, considering their goals, culture, and ability to effectively implement and sustain such a compensation approach.

The evolution of person$-$focused pay programs traces back to the mid$-20$th century, a period dominated by rigid compensation structures tied to job titles and seniority$.$ In response to the limitations of these systems, the $1960$s and $1970$s witnessed the emergence of the concept of "merit pay," emphasizing the recognition of individual performance $($Stone$,$ et al$.,2020).$ However, it was not until the $1980$s and $1990$s that a more formalized approach to person$-$focused pay programs took shape. During this period, organizations adopted structured merit$-$based systems, where pay increases became directly linked to performance evaluations, moving away from a one$-$size$-$fits$-$all model. The late $20$th century and early $21$st century saw further refinement of these programs with the advent of advanced technology and performance management tools. Today, person$-$focused pay programs have become a standard feature in compensation strategies, reflecting the ongoing effort to balance individual recognition with concerns about fairness and transparency $($Martocchio$,2020).$ The evolution of these programs mirrors a broader organizational shift toward recognizing and rewarding individual contributions in response to the dynamic nature of the modern workforce.

Person$-$focused pay programs, which saw a sluggish uptake in the $1980$s$,$ are now regaining traction, propelled by transformative shifts in work and the job market. The contemporary business landscape, characterized by fierce competition for top talent, has prompted organizations to reassess their compensation strategies. This shift holds relevance for seasoned professionals like Susan Jackson, who, after eight years in a technological manufacturing career, finds herself frustrated by what she perceives as a dearth of opportunities to showcase her considerable talents and skills $($Glaser$,$ et al$.,2020).$ This frustration has spurred a renewed interest in person$-$focused pay programs, wherein compensation is intricately tied to individual performance metrics. For Susan, the prospect of a job featuring such a program is enticing, offering the promise of not only recognition for her contributions but also clear trajectories for career advancement and heightened motivation.

Yet, the adoption of person$-$focused pay programs entails a nuanced set of considerations. From an organizational standpoint, the advantages are compelling, encompassing the potential for enhanced performance, improved retention rates, and the flexibility to attract and retain specialized talent. However, this shift is not without its challenges, including the potential for increased labor costs, the risk of fostering unhealthy competition among employees, and the inherent complexity of program management. Employees, on the other hand, stand to benefit from increased recognition, heightened motivation, and well$-$defined career paths $($Chalutz Ben$-$Gal, $2019).$ Nevertheless, they may grapple with the subjectivity inherent in performance evaluations and the sustained pressure to consistently perform at peak levels.

As organizations navigate these potential advantages and disadvantages, a delicate balance is required to ensure the successful implementation and long$-$term sustainability of person$-$focused pay programs. The ever$-$evolving landscape of work demands innovative compensation approaches that carefully consider and balance the needs of both the organization and its employees $($Belcourt$,$ et al$.,2020).$ This delicate equilibrium is crucial for fostering a workplace culture that nurtures individual growth