STRATEGIC PAY PLAN

GROUP:
• SALMAN ZAIDI 12290
• HUMA GUL 12004
 STRATEGIC PAY PLAN:

 Determining Pay Rates

 Establishing Pay Rates
 Competency Based Pay
Determining Pay Rates

 Assess The Position

 Research Wages
 Determining a Max and Min
 Decide How You’ll Pay
 Be Flexible and Open to Negotiation
Establishing Pay Rates:

 A Salary Survey (External equity)

 Job Evaluation (Internal-Equity)
 Pay Grades
 Wage Curves
 Fine-Tune Pay Rates
Competency-Based Pay:

 A system for defining required skills

 A process for trying the person’s pay to his or her skill level
 A training system that let’s employees acquire the skills
 A formal skills competency testing system
 A work design that lets employees move among jobs to permit work
assignment flexibility
Why Use Competency-Based Pay?

The main reason is that traditional pay plans may actually backfire if a high-
performance work system is your goal. The whole thrust of these systems is to
encourage employees to work in a self-motivated way.
The Bottom Line On Competency-
Based Pay:

Competency-based pay has detractors. Some note that competency-based

pay “ ignores the cost implications of playing(employees) for knowledge, skills
and behaviors even if they are not used.”