____ is whatever wage the employer and the employee agree on for a job. In class we discussed how this might change based on geographical location, as an employer would pay a different wage to someone in rural Kansas versus someone in Chicago as the wage rates in those two locations are going to be very different (even if the work is the same). A. Exchange value B. Use value C. Content D. Person-based compensation
____ is whatever wage the employer and the employee agree on for a job. In class we discussed how this might change based on geographical location, as an employer would pay a different wage to someone in rural Kansas versus someone in Chicago as the wage rates in those two locations are going to be very different (even if the work is the same).
| A. |
Exchange value |
|
| B. |
Use value |
|
| C. |
Content |
|
| D. |
Person-based compensation |
Person-based compensation is a compensation system that bases pay on the skills, knowledge, and abilities of the employee. It is also known as competency-based compensation or skill-based pay.
In a person-based compensation system, employees are paid for what they know and can do, rather than for the job they hold. This means that employees can increase their pay by acquiring new skills and knowledge.
Person-based compensation systems are often used in organizations that value continuous learning and development. They can also be used to attract and retain high-performing employees.
Here are some of the advantages of person-based compensation:
- It can help to attract and retain high-performing employees.
- It can motivate employees to learn and develop new skills.
- It can help to create a more flexible and adaptable workforce.
- It can help to reduce wage disparities between employees with different levels of skills and experience.
Here are some of the disadvantages of person-based compensation:
- It can be difficult to implement and administer.
- It can be expensive to train employees in new skills.
- It can lead to inequities if not managed properly.
Overall, person-based compensation can be a valuable tool for organizations that want to attract and retain high-performing employees. However, it is important to carefully consider the advantages and disadvantages before implementing this type of compensation system.
Step by step
Solved in 3 steps
