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Skill-Based and Competency-Based Pay Structure

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What differences and similarities exist between skill-based pay structures and competency-based pay structure?

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https://brainmass.com/business/organizational-assessment-and-diagnosic-skills/skill-based-and-competency-based-pay-structure-587259

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Skill-based pay structures reward individual members of a team for possessing, acquiring, and applying skills they have learned and putting them towards accomplishing goals for the organization. This type of pay structure fosters a learning environment where individuals strive to learn new skills in order to receive an increase to their base salaries. A skill-based pay structure is very beneficial when a team is required to know many different functions. Within this pay structure, the organization determines new skills that must be developed in order to help the organization run more effectively. Flexibility is increased within the workforce because members of a team broaden their ...

Solution Summary

This solution discusses the differences and similarities that exist between skill-based and competency-based pay structures.

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Compensation Structure: Kudler Foods

Given Kudler's new strategy, your team needs to create a compensation structure for the following six positions.
Store Manager, Cashier, Stock Person, Speciality Department Worker, Department Manager and Bagger.
Each member of the team should pick one to two positions to analyze. Each team member must analyze all six positions.
For each position, the team members must do the following.
a) Assess the value of the position using a job-based approach. The job based approach will assess the value that the specific position brings to the organization.

b) Assess the value of the position using a person-based approach. The persn based approach will assess the cerain skill sets or competencies that a person will need in order to sccessfully hold the position. NOTE: For the person-based approach, you may use a skill-based analysis or a competency-based analysis. Also discuss why your team selected the approach used.

In order to cmlete this job position analysis, you will need to research what other companies have done when conducting similar analyses.
Evaluates bot approaches (job-based and person-based) and creates a compensation structure based on both approaches. In considering both approaches, what will the compensation structure look like for each position? Justify your recommendations with research.

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