HUMAN RESOURCE MANAGEMENT PRACTICE - Fichier PDF

718 ❚ Rewarding people90% Recruitment95%97.5%}Consolidated increases relatedto competence£100% Reference pointAB}Highly competent: aligned tomarket rateBonuses for exceptional contribution –may be consolidated if exceptionalcontribution sustained110% CFigure 47.8Contribution-related pay model (Shaw Trust)DefinedSKILL-BASED PAYSkill-based pay provides employees with a direct link between their pay progressionand the skills they have acquired and can use effectively. It focuses on what skills thebusiness wants to pay for and what employees must do to demonstrate them. It istherefore a people-based rather than a job-based approach to pay. Rewards are relatedto the employee’s ability to apply a wider range or a higher level of skills to differentjobs or tasks. It is not linked simply to the scope of a defined job or a prescribed set oftasks.Askill may be defined broadly as a learnt ability that improves with practice overtime. For skill-based pay purposes the skills must be relevant to the work. Skill-basedpay is also known as ‘knowledge-based pay’, but the terms are used interchangeably,knowledge being regarded loosely as the understanding of how to do a job or certaintasks.