• What is competency based pay
  • Competency-Based Pay by Raveel Siddiqui on Prezi
  • Why use Competency based Pay? - CiteMan

Competency-based interviews are increasingly popular among recruiters but there really is nothing to fear if you know what to expect.

Competency Based Pay - Term Paper

4 Advantages of Competency-Based Pay Structures | …

Competency-Based Pay for Teachers - Prezi
Experts variously call this competence as knowledge or skill based pay.
With this pay factor, an employee working in section1, who could do section 2 work gets paid as a section 2 worker, not as section 1 worker.
The bottom line on Competency-Based Pay
Competency-based pay has detractors.

A major element in this is competency-based pay

Using competency-based pay is …
If doing well gets us more money, we are likely to push ourselves harder when promised more money
Works as motivation to become a high achiever
Understanding that we will be rewarded for doing our best, we will keep aiming higher and higher in hopes of our money reflecting that
Pro: gives employees clear goals
With competency-based pay, the employees are given transparent expectations that you, as the employer, have for them
This will help them to stay on task and succeed without a bunch of missteps
Outlines employee development and promotional paths within the organization for both the employers and the employees (3)
Pro: individuality
This method recognizes each employee for their own values and success
Instead of grouping, as with salary-based pay, each individual person is acknowledged with praise and with punishment
You must be careful because you will constantly be under the spotlight and you can't hide behind a fellow employee
Con: competition
When money comes into the picture, people could begin to get competitive rather than collaborative
Some teachers can begin to resent each other because one makes more than they do
"It reminds me of what happens in a department store when employees begin to be paid on commission" (5)
Con: favoritism
People could begin forming alliances, scheming, and brown-nosing the administrators in charge, in hopes of a promotion or higher pay
"If one worker perceives herself as more valuable than another but discovers that the other employee received a larger pay increase, she may draw the conclusion that she is being treated unfairly" (1)
Using competency-based pay is a much more complicated method instead of just telling employees what you expect from them (4)
It can seem to people that you are praising them for good behavior and punishing them for bad behavior by using money
There are much simpler ways to express your standards to employees, such as including it in the job application requirements
Con: over-complication
Passing a course/earning a degree can increase salary but course grades, degree of learning, and relevance of the course do not effect salary (5)
Teachers should want to teach and serve kids, not for the money, but for the sheer joy of making a difference in a young adult's life
Con: shallow achievements
National Board Certification certifies that a teacher has certain skills and knowledge, so they might be able to pass a test but not reflect this confidence in the classroom.
Teachers are judged on how they are doing their jobs and most feel that this ends up being biased or inaccurate of how they really are
Con: personality switch
Pressure comes from all directions with this method of pay because teachers will pressure each other and so will school administration above teachers
They become constantly stressed to maximize student achievement but at the same time they must work as a team
Con: too much pressure
To sum it all up...
I personally that competency-based pay has much more cons than pros.


When competency-based pay relates to creative …

A major element in this is competency-based pay.
Competency-based pay - rewards individuals based on how well they perform in relation to general attributes as opposed to the more traditional method of paying based on a predetermined pay grade or salary structure (1)
"It rewards employees for the skills, knowledge and behaviors important for personal performance and organizational success and not just for the activities they perform." (2)
"We believe that new compensation methods are not only feasible, but necessary, in order to attract the best and brightest in the teaching profession, keep the most effective of these in teaching, and motivate all teachers." (5)
Pro: better communication
With the goals clearly set, this creates more space for better communicating between employees and employers
"Employees have a greater understanding of the overall business strategy of their organization and the aims it is working towards." (6)
Nothing is hidden in the dark, that gives a larger area for communicating and less room for conflict
Pro: encourages better performance
As humans, we love money.

Howcan my agency start a project toward competency-based pay or any of the otherpay opportunities in the alternative system? If management is interested inpay changes in a unionized environment, contact your labor relationsrepresentative in the Labor Relations Bureau (444-3871). Depending onmanagement’s particular goals or interests, union involvement may be necessaryearly in the process. The labor relations staff will help management analyzethe statutory bargaining obligations and develop an effective plan for futureprogress.

Competency Based Pay « NL Fisher - Supervision & …

A typical project in the alternative classification andpay system generally starts with at least a couple assumptions. One assumptionis that management has an interest in alternative pay methods, such ascompetency-based pay, or market-based pay, or other methods available in thebroad band pay system. The other assumption is that an agency’s top leadershipsupports management’s interest in alternative pay methods. Approaches forinitiating a project may vary, but one constant in the unionized workplace isthe legal obligation to bargain with the employees’ exclusive representativeover proposed pay changes.

Competency-Based Pay: A Concept in Evolution - Jul 23, 2016

The whole thrust of these systems is to encourage employees to work in a self motivated way.
Employers do this by organizing the work around team, by encouraging team members to rotate freely among jobs.

In such system you obviously want employees to b enthusiastic about learning and moving among other jobs.
Why use Competency-Based Pay

Competency-based pay has become the focus of much heated debate today

There may also be simpler ways to encourage the necessary learning.

Competency-Based Pay in practice
In practice, any skill/competency/knowledge-based pay program generally contains five main elements, which are listed as follows :
A system for defining specific required skills.
A process for tying the person's pay to his or her skill level.
A training system that lets employees acquire the skills.
A formal skills competency testing system.
A work design that lets employees move among jobs to permit work assignment flexibility.
Pay for knowledge pay plans reward employees for learning organizationally relevant knowledge
Microsoft pays new programmers more as they learn the intricacies of windows.

Skill-based pay tends to be used more for workers with manual jobs
Carpenters earn more as they become more proficient at finishing cabinets.
Demonstrable knowledge,skills or behaviors that enable performance.
Competency-based pay usually comes down to using one or both of two basic types of pay programs :
Pay for knowledge
Skill based pay

Competence-based pay
Why pay employees based on the skill, knowledge, competency level they achieve, rather than the duties of the jobs to which they are assigned ?

The main reason is of a 'high performance work system' in our goals.