Increase and pay for knowledge

221 views 6 pages ~ 1390 words
Get a Custom Essay Writer Just For You!

Experts in this subject field are ready to write an original essay following your instructions to the dot!

Hire a Writer

Pay for experience and advancement is a payment scheme used by the human resources (HR) department to reward employees depending on their skills and level of professional qualification (Gerhart, 2016). To effectively control an organization's pension programs, HR employees must consider the system's function and model. Since technology has enabled businesses to improve productivity while hiring workers, the use of this system would save time and money by automation.

The Pay for Knowledge System's Justification

To assess compensation, the Pay for Information scheme considers knowledge and abilities. In the pay knowledge model, the HR personnel evaluates both jobs and develops a pay system in consideration of the pay theories and legal implications after assessing all he factors (Wilson, 2015). Then, the system lists jobs titles and ranks them in order of contribution to the organization. Job evaluation aids in determining fairness and equitable pay among employees (Wilson, 2015). Each compensable factor is weighted and compared to the benefits of the knowledge and skill to the company (Gerhart, 2016). The process ensures that workers receive a fair pay raise within their grade range. The score is then allocated to each job title to determine the highest to the lowest valued job. For example, based on the knowledge and skills required, a director of human resource is likely to be ranked above the marketing manager to receive a higher remuneration.

Benchmark High/Low Jobs

Contemporary organizations use job grades as the base for determining their employee’s pay. However, they should apply benchmark, which refers to the identification of employees’ roles and skills that knowledgeable parties can be estimate (Gerhart, 2016). The grades depend on the job sizing systems used by the company. In many cases, agencies prefer this technique for a small number of roles for every job title to minimize costs (Gerhart, 2016). Thus, the size of the benchmark is not a primary factor in determining its quality, but its ability to permit parties to assign individual roles in the organization’s job sizing structure.

Benchmarking process includes top positions in the organization, which has the director of human resources and marketing. Specifically, the HR personnel update the organization chart by evaluating the benchmarked roles and refining their selection. Overall, the benchmarking selection should commence with the common roles (Wilson, 2015). However, the roles and skills do not imply that they are more essential to the company, but serve a narrow function in aiding the directors to formulate a comprehensive group of differential and relativities.

Recommendations about Managing Future Compensation Increases

Contemporary, companies strive to manage dynamic changes in their compensation schemes. Barling (2014) asserts that gone are the days when firms used to give equal pay increases to all employees. Currently, modern organizations face many constraints in budgeting for workers’ benefits, compensations, and salary. Thus, they need an effective management system of their payments plans.

Other than the historic pay increase and variables of rewards, such as bonus, profit, and gain sharing, a company should plan. CORE Company should pay attention to the quality of work life rewards to manage future compensation increases effectively. Thus, when a group offers a variable pay rate of approximately six to eight percent in addition to the basic salary, the employees should post better performance (Long, 2014). In fact, the increase should motivate the workers to produce more.

Red – circle is the salary of the workers that are either above or below the pay range that is associated with the job under which the staff is incumbent (Long, 2014). Red circles emanate from the organization due to the prolonged tenure of the employees in the company whose annual salary increment eventually goes beyond the required salary range. The CORE Company is should cut the salary increase to reduce the occurrence of the red circles. The organization can also freeze the pay increase that is beyond the maximum allowed.

Green circles arise when the worker could have been employed at the minimum salary range (Long, 2014). Promoting an employee from a lower position to a higher rank in the organization results in pay rise of about 15 or 25 percent, which contributes to the green circles (Long, 2014). To this end, CORE Corporation should to increase its worker's salary to align with the individual’s performance. The approach is most suitable for organizations with a large budget. Additionally, it should gradually increase employees’ wages to the suitable level. This method is appropriate for organizations with the small budget.

Organizations are established on the basis of legal and ethical standards (Barling, 2014). Therefore, companies are supposed to be vigilant and be in a position to spot cases of immorality. One suitable recommendation for CORE Corporation is that it should develop a concrete mission statement and establish a strong code of conduct to reduce the possible constraint that infringes its legal and ethical standards. Moreover, the agency should also incorporate its policy into the performance management plan to hold workers accountable for their actions. The firm should also serve employees with forms enlisted with ethics policy that they should append their signatures to indicate that they understand the organization's corporate policy.

In summary, the Pay for Knowledge and Increases is a remuneration system that considers the educational development of employees. In prevents equal payment of employees because each has a different degree of contribution to the productivity of the firm. The system considers the relative increments in the educational skills of the workers before raising their basic pays by the specified percentiles. Apparently, the process is useful as it saves costs and time.


Barling, J. (2014). Knowledge work in organizational behavior.International journal of management reviews, 2(3), 287-304.

Gerhart, B. (2016). An empirical analysis of a skill-based pay program and plant performance outcomes. Academy of management Journal, 41(1), 68-78.

Long, R.J. (2014).Strategic Compensation in Canada, fifth edition. Nelson, ISBN 978-0-17-650968-2.

Wilson, M.C. (2015). Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective. Academy of Management Review 19(4), 699–727.


Appendix 1

Fig 1.Pay Knowledge Model Used To Determine Compensation


Scale I

Position Skill Requirement

Check the boxes below and

indicate if by ticking (√) if you

can perform the listed duty

Scale II

Employee Knowledge

Indicate by ticking (√) if you have the following skills

Department of Marketing

Director Of Marketing

Manages the marketing

and sales of

products and services

that meet customer needs

and will make a positive

contribution to the company’s

Financial performance.

In conjunction with senior

management, establishes the

appropriate price guidelines

For company products and services.

Evaluates current marketing

strategy and recommends

new strategy to the executive

Committee when appropriate.

Prepares sales forecasts for

Each fiscal year.

Prepares a departmental budget.

Evaluates current policies, procedures

and practices.

In conjunction with the Human Resources

Department, responsible for selection,

evaluation, and coaching of regional

managers and for ensuring that all sales

Staff receives proper training.

Liaises with other Department

Managers to ensure that overall

Corporate objectives are being accomplished.

Provides support to top management

in identifying strategic issues and

Trends are affecting the company.

Posses a university

Commerce or Business Administration degree


Master of Business



At least ten years

of experience in


of technologies

with atminimum of

five years in management


Ability to develop

, supervise, and

Coordinate workers.

Ability to handle conflict

Ofinterest in the

Organization. Surpass departmental duties.

Superb communication

Skills.Ability to solve

problem in the


Can cooperate with

managers in the same

the line in the organization.

Department of human resources

Director Of Human Resources

Ensure the acquisition, training,

retention, and motivation of

personnel needed by the

company to achieve its

Corporate goals.

Evaluates HR plan and

Organization Design.

Recommendation of current

HR polices to the executive

committee when


Preparation of the budget in


and assesment of HR goup.

Evaluates currentpractices, procedures

and policies.

Ensure compensation expenditures

Are effectively deployed in

The company.

Develop a suitable compensation

And reward strategy. Supervises

Implementation of approved

Polices and strategy.

Helping other departments

in navigating through HR

Problems and issues

Providing assistance to

senior officials in selecting

strategic problems and trends

affecting the company.


Commerce or

Business Administration

Degree (human resources).

Master of Business

Administration in human resources and Certified

Human Resources


(CHRP) designation.

Experience of ten

years in HR capacity

and a minimum offive years

in management and

technology industry

Coordinate, supervise,

And develop workers.

Handle conflict of

interest among workers. Surpass department performance.

Source: Gerhart (2016)

November 09, 2022

Life Literature


Experience HR Management

Number of pages


Number of words




Writer #



Expertise Understanding
Verified writer

Nixxy is accurate and fun to cooperate with. I have never tried online services before, but Nixxy is worth it alone because she helps you to feel confident as you share your task and ask for help. Amazing service!

Hire Writer

This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Eliminate the stress of Research and Writing!

Hire one of our experts to create a completely original paper even in 3 hours!

Hire a Pro