Performance Management Systems and Strategies

COMPENSATION DESIGN THROUGH SKILL-BASED PROGRAMMES

Organizations that pursue skill-based compensation programmes reward their employees on attainment of additional knowledge and skills. The underlying philosophy behind this is that on acquiring higher qualifications and skills, knowledge of the employees enhances and, accordingly, it exerts positive impact on their performance. Some organizations, therefore, motivate their employees to acquire higher knowledge and skill with additional increments or pay rise, as such investment reflects through incremental performance results. With the increased knowledge and skills, employees can also improve their competencies. To introduce skill-based compensation, at the outset, it is necessary to document ...