Designing a Person-Focused Pay Plan in Performance Management
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Designing a Person-Focused Pay Plan in Performance Management
Definition of Person-Centered Pay Plan
Present-day organizations under intense stress to gain and keep the best talent have implemented unique compensation plans, like person-focused pay plans. Moin (2021) notes that the person-focused pay plan is the pay structure that recognizes and rewards the individual’s unique talents, skills, and the contribution they make to the organization. This can be different from the conventional pay structures that only consider the employee’s job title and responsibilities. These are based on how the employee is supposed to perform, the level of expertise, and the growth potential. It creates fairness, motivation, and engagement toward employees within the workplace.
Developing the Performance Plan
We will refer to our new hypothetical employee as Sarah. Sarah is a digital marketing specialist on our marketing team. The capability of designing a performance plan that incorporates being person-focused enables us to focus on her strengths, goals, and development needs.
- Goal Setting
Establish with Sarah SMART goals that are aligned with departmental objectives and her potential as a digital marketer. Examples include Increasing online engagement by X%, Driving the successful launch of two social media campaigns within the next six months, and Acquiring a skill about the next big thing in emerging digital marketing trends.
- Performance Appraisal
Establish a systematic performance appraisal system whereby constructive feedback is given on her performance, areas of development in which she needs to develop her competencies, and career development opportunities. Use 360-degree feedback; peers, supervisors, and clients give Sarah diverse and comprehensive information about her contribution and impact.
- Recognition and Rewards
Recognize Sarah’s outstanding performance by giving her some reward, maybe through bonuses, promotions, promotions, or special projects. Her concrete contributions should pattern rewards and what she aspires for in her career to embed the value of her efforts toward organizational success.
- Continuous Learning and Development
Foster Sarah’s professional growth through continuous learning and development initiatives like workshops, online courses, and mentoring programs. Inspire her to upgrade her skill set and remain updated on industry trends to stay competitive in the fast-paced field of digital marketing.
References
Moin, N. E. (2021). Compensation Management Practices and Employees Satisfaction of Little Group of Companies. Uiu.ac.bd. http://dspace.uiu.ac.bd/handle/52243/2151