LDR6000 Deliverable 2 – People Focused Compensation Training
People Focused Compensation Training
Kwane Frazier
Rasmussen University
LDR6000
Prof. Kenya Walton-Guillot
Submission Date
Deliverable 2 – People-Focused Compensation Training
Training Agenda
Concept of a People-Focused Pay Model
- Definition and Relevance:Â In a people-oriented compensation program, the talents and competencies of the employees take precedence over job titles (Kim & Jung, 2022). It encourages the growth of human beings and the acquisition of skills in order to enhance the productivity of the organizations.
- Example:Â The added value of the vacancy can attract a higher pay grade for the scientist dealing with the formulation of biopolymers.
Comparison of a Competency-Based Pay Model to a Job-Based Pay Model
- Distinctive Characteristics: JBP models are based on position and year of experience (Aino Tenhiälä et al., 2023). Competency-based strategy at Marylion is the strategy that associates remuneration with skills and workplace performance.
- Example:Â A competency-based approach will give a high reward in the form of an advanced scientist with the same tenure and rank.
Explanation of a Stair-Step Model of Compensation
- Model Description:Â The results of a comparison between the Competency-Based Pay Model and the Job-Based Pay Model are provided.
- Example:Â A competency-based pay model has been compared with a job-based pay model.
Advantages of a People-Focused Pay Model for Scientists at Marylion
- Benefits for Continuous Learning:Â This model motivates scientists to work, as it associates it with salary promotion.
- Example:Â Cosmetic scientists who possess certificates of safety and compliance may expect to be remunerated more highly.
Impact of People-Focused Pay on Employee Motivation through Promotions and Career Paths
- Career Development and Motivation:Â The direct connection between skill development, an increase in income, and promotions is an incentive for long-term career development.
- Example:Â When an employee successfully completes a product development project, he will be perceived to be willing to improve in terms of competencies, thereby showing the leadership and technical expertise needed.
Training Outline
Concept of a People-Focused Pay Model (6 minutes)
- People-Focused Pay:Â The framework of the model is depicted as employees’ skills and abilities being more decisive compared to the title they hold or their position in the organizational structure (Kim & Jung, 2022).
- Real-Life Application:Â Emphasizing the fact that people would be paid more as soon as they develop higher skills, such as complex analytical chemistry, and prove that they are competent and valued by the employer.
- Benefit to Employees:Â This model promotes individual development and the acquisition of skills.
Comparison of a Competency-Based Pay Model to a Job-Based Pay Model (5 minutes)
- Key Differences:Â Job and tenure-based models are focused on role and tenure, whereas competency-based models are focused on skills and achievements (Igbaji et al., 2024).
- Example:Â Scientist A and Scientist B are both senior researchers; however, Scientist A has the additional skill in regulatory compliance, such as the competency-based model would pay Scientist A more than Scientist B.
Explanation of a Stair-Step Model of Compensation (5 minutes)
- Model Structure:Â Explain the systematic levels of the model, having specific competencies and pay grades (Anugrah Putri et al., 2020).
- Example:Â An example of a story of how a junior chemist can become proficient in running gas chromatography and be promoted to a level of higher pay, which is also a skill-based promotion.
Advantages of a People-Focused Pay Model for Scientists at Marylion (6 minutes)
- Encourages Continuous Improvement:Â Demonstrating the way the paradigm promotes the growth of skills and learning.
- Example:Â A scientist with increased training in the field of biotechnology is given a pay rise and a promotion, showing that the level of skill directly affects salaries.
Impact of People-Focused Pay on Employee Motivation through Promotions and Career Paths (6 minutes)
- Motivation through Skill Development:Â Associating the growth of skills with career advancements and elevations.
- Career Pathway Example:Â How an example of a scientist who became a leader in project management can improve his career be promoted and get a pay increase due to his impact on the company objectives.
Speaker Notes
Concept of a People-Focused Pay Model
Introduction and Definition
Welcome everyone. This morning, we are going to talk about the essence of people-centered pay and its impact on the distribution of salaries within a working environment. The employment model uses an alternative type of payment that eliminates the position-based structures that generalise job titles and experience time, and instead, recognises individual achievements of the employees and the degree of their skills and abilities. It is about not only recognizing the value and your value to our team, but also rewarding you accordingly. For instance, say you’ve come up with a new method of testing in the laboratory, the performance of which will be immediately ingrained into the actual working process. This would mean adding your value to the company in terms of the increment in your salary.
Benefits for Individual Growth
This model enables you to work towards professional development by providing incremental compensation in the event that you have developed a better skill set and possibly contributed something novel. It facilitates continuous involvement and practical application of those abilities that are above and beyond vital in our job title. Developing this variation into a compensation policy will ensure that your salary rise and career promotion will remain within the increasingly active sphere of cosmetic science that is constantly developing.
Comparison of a Competency-Based Pay Model to a Job-Based Pay Model
Differences in Compensation Focus
And now, let’s see what the two compensation models have in common. The conventional income model that is pegged to job role and designation is largely fixed and can only change drastically when promoted or when time sets in. But our competency-based system, a subsystem of human-centric salary, sets your salary rate according to your skills and the particular value you bring. An example is where two of our scientists are on the same job level, with one being in a location with high demand, such as regulatory affairs; then that scientist will earn more on our new system.
Example
A ship of a couple of scientists who were hired by the firm simultaneously. As in the case of Scientist A, the complex data analysis software has to be at the helm of his/her leadership as it becomes very crucial in proceeding with projects, but Scientist B stays attached to the same. In this model of competency-based pay, Scientist A will receive a higher pay package in order to reap the strategic benefits of his/her newly developed capabilities.
Stair-Step Model of Compensation
Overview of the Stair-Step Structure
Our stair-step model will be specifically organized into set levels, or in other words, steps, where each level will be specific to a set level of competency we highly prize. You are improved through the success of the first skill you acquire, and at the next stage, you get a higher remuneration on the new level.
Example of Career Progression
Take as an example a junior chemist in our organization, achieving with ease difficult spectroscopy, and starting with the simplest to the most difficult analyses. The first compensation stage would suit them because they are contributing more to the organization and at a higher level; the first stage shows them that they can deliver at a higher level.
Advantages of a People-Focused Pay Model for Scientists at Marylion
Incentives for Continuous Improvement
Quite extraordinary, the advantages of this model, in your case, as personal researchers of Marylion. It causes you to become dedicated to technology and processes that keep you at the edge of present-day medicine. To illustrate, when a scientist gains knowledge about the newly developed biotech applications and uses the new knowledge to develop a product for the company, this effort will certainly pay off not only through personal gratification but also through the cash component.
Encouraging Innovation and Adaptability
In the meantime, the pay model also provides you with a financial plan; here, you will be paid based on the company mandate, but with a high degree of encouragement and reward for innovative ideas. In this manner, it is beneficial to your career and personal aspirations at the company.
Impact of People-Focused Pay on Employee Motivation through Promotions and Career Paths
Linking Skill Development to Career Advancement
Under this model, there is a clear relationship between the fact that your skills and training determine how fast you move up the hierarchy. Naturally, as you grow in your career, as you get promoted and receive higher payments, you are supposed to be accompanied by increased capabilities in your area.
Example
Suppose that a colleague is the lead of a very impressive project. They demonstrate skills beyond those initially acquired during their scientific education, which allow them to develop even further and be viewed as more professional by doing an excellent job of managing the project and fulfilling its mission. Under this approach, career development would be a vibrant process, where the outcomes of the process are tied to your effort, and at the culmination of the pathway, you will be reaping benefits in abundant forms of rich and clear rewards.
References
Understanding the role of job satisfaction in the workplace from the millennial generation’s perspective on organizational performance. KnE Social Sciences. https://doi.org/10.18502/kss.v4i6.6662
Igbaji, P. M., Okpo, E.-I. E., Ufot, J. J., Johnson, O., Lateefah, Y.-I., & Okwudiri, O. M. (2024). A conceptual review on compensation management and employee productivity. Frontiers in Management Science, 3(1), 1–5. https://www.paradigmpress.org/fms/article/view/996
Kim, J., & Jung, H.-S. (2022). The effect of employee competency and organizational culture on employees’ perceived stress for a better workplace. https://doi.org/10.3390/ijerph19084428