Competency Based Pay Definition and Explanation PDF Download
Learn Competency Based Pay definition in hrm with explanation to study “What is Competency Based Pay”. Study competency based pay explanation with HRM terms to review HRM course for online MBA programs.
Competency Based Pay Definition:
Rewards individuals for the capabilities they demonstrate and acquire.
Human Resource Management by Robert L. Mathis, John H. Jackson
Competency Based Pay Explanation:
Organizations that utilization competency-based compensation structures remunerate representatives dependent on the abilities, learning and experience they apply in the work environment as opposed to their activity title or position. This methodology is intended to propel representatives to progress toward becoming optimistic, expand on their current aptitudes and apply these in their activity. Competency-based compensation is a compensation structure that repays representatives on their range of abilities, their insight, and their experience. Competency-based compensation is a choice to pay dependent on employment title and position. Competency-based compensation is intended to urge workers to add to the organization by enhancing their aptitudes. A competency-based compensation plan is an instrument used to quantify a representative's ability level, learning of their activity, and their past encounters. Workers are then paid dependent on their benefits. It gets rid of the typical various leveled way that business is generally done and urges representatives to assume responsibility for their own work. It persuades them to arrive at the compensation rate that they want.
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