Advantages and Disadvantages of Person-Focused Pay Programs
6 Explain the advantages and disadvantages of person-focused pay plans.
Although no large-scale studies have clearly demonstrated these benefits, case studies suggest that employees and companies enjoy advantages from person-focused pay programs. Well-designed person-focused pay systems can provide employees and employers with distinct advantages over traditional pay systems. There are potential limitations of person-focused programs.
Advantages
Employees usually like person-focused pay systems for the following two reasons. First, they can provide employees with both job enrichment and job security. Job enrichment refers to a job design approach that creates more intrinsically motivating ...
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