Feb 09

Following are approaches to determining pay

  • Merit Pay – pay for the job; based on the role an employee plays in the organization and how well s/he performs the role
  • Person-Based Pay – pay for the person; based on what an employee brings to the job
  • Results-Based Pay – pay for results; utilizes variable pay to reward results

Most important is to strike the balance between cost perspective, employer perspective and employee perspective.

 

 

 

 

 

 

 

 

 

 

 

Source: Mercer Human Resource Consulting, 2004

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