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Person-Focused Pay Programs

What are the reasons companies adopt such person-focused pay programs?

Person-focused pay programs are fair to the employees and meet employer needs.In this system, employees are paid based on all the skills they have, not just the skills they use.While working in the men's prison, several of our inmates who worked in the kitchen were taken to holding cells due to an investigation of a fight the prior night.These kitchen workers were taken in the middle of lunch!The Deputy Warden of Security is a great cook!She saw a need and she jumped right in to fill the need!The inmates make a few dollars during their shift.Even though the Deputy Warden was working a job that only pays a few dollars, she was still paid her Deputy Warden wages, because she has the skills to run the prison.

Distinguish between the three types of person-focused pay programs (i.e., pay-for-knowledge, skills-based, and competency-based)

I don't see much difference between skills based and pay for knowledge systems except that one seems more blue collar and the other more white collar.

Skills-based means employees are paid higher wages if they have more skills or certificates.My dad just became a master electrician.He was worked for an electrician for many years before going to school, becoming a journeyman, passing his exam and becoming a master electrician.After each level he got a raise because he was certified to do more work and he required less supervision.

An example of pay-for-knowledge is going to see a psychology student vs going to see a Psychiatrist.A psychology student has some counseling skills and can counsel people but is under supervision and often working towards a license.A Psychiatrist has a doctorate and has completed medical school.A Psychiatrist can prescribe medication and costs a whole lot more than visiting a psychology student.

Competency based pay is much more vague because competencies are not universally defined in the same way a degree or certificate are.Competencies can involve skills and knowledge but also character and experience.The men's prison used job based pay so all Captains make roughly the same amount of money.If the prison used competency based pay, Captain Boyd and Captain Hopper would make more than the other captains because of their experience and the way they handle "security incidents".Captain Hopper has been a captain for many years and Captain Boyd is new but eager to learn.He also remains calm during emergencies.Both men have military backgrounds.Captain Cantrell does not have a military background and doesn't always know or follow policies.He would not make as much as the others under competency based pay.(***Names changed.***)

What are the advantages of person-focused pay for the employee? For the employer? What are the disadvantages for the employer?

The employee gets paid for his or her knowledge and skills, not for task he or she does.The employer can send employees with a wide range of skills and knowledge to "meet the need", which increases productivity and decreases the amount of time employees are paid to sit around without working.Disadvantages to the employer could be losing money by paying a highly skilled and knowledgeable employee to accomplish a low skill job that a lower paid employee could do.

Does your current employer have a person-focused pay structure as part of the overall compensation system? If so, explain. If not, would you suggest the company consider it? Why or why not?

No, with the state, employees are paid by their assigned job.In some ways this benefits the state - I don't get paid more to do the job because I am a notary or CPR certified and I won't get a raise when I graduate college.The only way to get a raise is to get a promotion.In other ways this does not benefit the state.Many in people the Department of Corrections have retired from a high position (like Captain or Unit Administrator, which is over a housing unit and directly under the Deputy Wardens).They then return as a lower paying job with lower stress (like a secretary or farm leader) but they still get their pensions.The biggest problem is that many experienced employees have retired recently and now younger and less experienced employees are filling positions when they might not have the skills yet.

I realize pensions are a bit different than regular pay.The biggest problem Kentucky is facing right now has to do with the pension plan.Several years ago, the state got rid of the pension plan because it was costing too much money.But they way they got rid of it was the stopped new employees from paying into it.(New employees have 401Ks.)So now that no one is paying into the pension and many are being paid out of the pension, the "pot" is emptying rapidly!

How could an organization integrate the concept of person-focused pay with an understanding of those same or similar concepts from a Christian worldview?

I don't think person-focused pay is a particularly "un-Christian" method that needs to be reformed.I think as employees, we should do our work well, without stealing from our employers.As managers, we should not require those we supervise to do our work for us, while we make larger paychecks and do their work - or worse, wander around without doing any work!