Pay for Results, the Person, or the Job?

Abstract

Organizations must decide the basis upon which they compensate workers. Rewards may be based on results, the capabilities the person brings to the organization, or the job held. The nature of the work performed and what is required to motivate the person to perform the work still have an impact on how rewards are determined. Sales personnel are most often rewarded for making sales, professional/technical personnel are rewarded based on their knowledge and trades, and production personnel are most often compensated for possessing specific, work-related skills. Although all employees may be assigned roles/jobs, what they are paid for will be a function of the nature of the work and of the contribution its completion makes to the organization’s performance. Rewards management strategies should fit the work and the organizational context.