base pay
what form of pay is guaranteed regardless of performance?
Base Pay
what type of pay system rewards employees based on their skills and competencies?
person based pay
define multiskilling (often used in skill-based pay systems)
acquiring new skills in multiple dimensions
how is position based pay determined for employees?
based on job content and responsibiliites
what pay system rewards employees based on the job content rather than their skills and experience
position based pay
name one motivational theory that explains how base pay satisfies employees needs
- Maslows hierarchy
- Herzberg theory
what are 'competencies' in terms of a person-based system?
combination of skills, knowledge and personal attributes
What is the main difference between skill-based pay and competency-based pay?
Skill-based pay rewards specific learned skills, while competency-based pay focuses on broader behavioral attributes
in a positioned based pay structured role, what is the primary determinant of pay progression?
Seniority
What is a key disadvantage of competency-based pay systems from an organization’s perspective?
The difficulty and cost of accurately measuring and assessing competencies
what are the three components of a total remuneration system?
base pay
benefits
performance related pay
what could be a potential challenge of pricing competencies in a person based pay system?
the difficulty associated with measuring and pricing behavioural competencies fairly and accurately
What is a potential drawback of skill-based pay for employers?
Higher labour costs due to employees acquiring skills beyond what is needed for their role
How might position-based pay potentially limit employee development?
by tying pay progression to the job role rather than individual skills or competencies
What theory suggests that secure income helps prevent job dissatisfaction?
Herzberg’s two-factor theory