Competency-based Compensation

What is employee compensation?

• All forms of pay or rewards going

  to employees and arising from their employment

• All forms of pay or rewards going

  to employees and arising from their workload

• Salary planned and given to employees.

• All forms of pay or rewards going

  to employees that is not coming from their employment.

Choose one that is not kinds of Compensation

• Monetary Compensation

• Indirect Financial

• Geographical area

• Nonmonetary

Advantages of compensation for employees

• Low turnover

• Peace of mind

• Increase productivity

• Low absenteeism

Advantages of compensation for company

• Work performance

• Increase motivation

• Peace of mind

• Low turnover

What is competency-based compensation

• A payment system that relates salary progression or a cash bonus to the display of “competencies” by individual employees.

• A payment system that relates salary progression or a cash bonus to the display of “ability” by individual employees.

• A payment system that relates salary progression or a cash bonus to the display of “skills” by individual employees.

• A payment system that relates salary progression or a cash bonus to the display of “knowledge” by individual employees.

What is Competency-based compensation based on Heery and Noon

• Systems that underlie good performance in a particular organization or job

• Systems originate in the identification of ability, understood as the key attributes and behaviors of employees that underlie good performance in a particular organization or job

• Systems originate in the identification of competency, understood as the key attributes and behaviors of employees that underlie good performance in a particular organization or job

• Systems to identify of competency

What are the characteristics of Job-based compensation

• Rewards employees who set goals to learn new skills and acquire new knowledge

• It easises to budget and plan for raises each years

• The only variance in pay is based on education, position, and seniority

• each years

  It’s not specifically used as a platform for employee growth and wage increases

Which one does not belong to steps of making pay structure?

• Job Analysis

• Comparing

• Look at regional minimum standard of wages

• Making payment

What is job evaluation

• A formal and systematic comparison of jobs to determine the worth of one job relative to another

• A nonformal and systematic comparison of jobs to determine the worth of one job relative to another

• A formal and nonsystematic comparison of jobs to determine the worth of one job relative to another

• A formal and asymmetric comparison of jobs to determine the worth of one job relative to another

Which one is not compensation method

• Ranking method

• Point method

• Classification method

• Evaluation method