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Challenges Associated with Pay Plans Based on Length of Service

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What are some of the challenges associated with pay plans that are based on length of service and not on performance results? How do we as HRM professionals determine the "value" (the effectiveness) of a pay strategy? From your viewpoint, what makes a pay strategy effective?

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This solution defines pay plans and discusses some of the challenges associated with pay plans that are based on length of service and not on performance, what makes a pay strategy effective (and how to determine this). This solution is 335 words with two print APA references.

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PAY STRATEGY: EFFECTIVENESS AND CHALLENGES

Challenges associated with pay plans that are based on length of service and not on performance results
Pay plans are basically forms of compensation given to employees by an organization. Compensation means an exchange to what an employee has contributed to the company. What an employee has contributed to the company's attainment of organizational goals and objectives is manifested by his performance.
The following are some challenges associated with pay plans that are based on length of service not on performance:
1. ...

Solution provided by:
Elisa Valdez, PhD
Education
  • Bachelor of Science in Business Administration, University of the Philippines
  • Master in Business Administration, Saint Mary's University
  • Doctor of Philosophy in Education, University of the Philippines
  • Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
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