The universal pay model of compensation was developed to properly structure the process of giving salaries to employees in various organizations. It consists of three main components: policies, techniques, and objectives (Janse, 2019). The policies include such aspects as competitiveness, alignment, management, and contributions (Janse, 2019). The techniques component incorporates work analysis, market definitions, costs, communication, evaluation, surveys, incentive program, and certification (Janse, 2019). The organizational objectives part consists of such elements as efficiency, fairness, and compliance (Janse, 2019). A similar structure was used in a company where I used to work, Locus Fermentation Solutions. This firm pays employee compensation based on workers’ roles in the company, and bonuses are usually given for outstanding performance, which is assessed with surveys and general evaluations.
Locus’s pay model ensures that all employees receive compensation to at least meet the minimum wage requirements. Notably, the company’s policies state that salaries should be aligned based on the types of tasks performed by workers. There was no overtime pay; thus, hourly employees were not allowed to exceed the established weekly limit of working hours. Still, its compensation system seemed fair and motivating since the additional effort and willingness to improve were always rewarded. Furthermore, the management of the pay model functioned well since employees received salaries on time. External competitiveness and contributions did not play a significant role in compensation at Locus. The techniques that Locus’s administration used in its pay model were work analysis, biannual evaluation, communication with supervisors, surveys about the workplace environment, and incentive programs. The latter was that workers could receive full or partial assistance with tuition to upgrade their knowledge and skills. The organizational objectives were to provide fair payment to the staff and ensure that company goals and tasks were done correctly. However, it seemed that the lack of strict control resulted in some workers not always complying with the rules.
In conclusion, the pay model, consisting of policies, techniques, and objectives components, is a universal approach to compensation and bonuses for workers that ensures that employees’ performance is adequately and fairly assessed. Similarly, the payment system was subdivided into three elements in the company where I used to work. Overall, Locus strived to assess individuals’ performance accurately and incentivize them with bonuses for increased effort.
Reference
Janse, B. (2019). Pay model compensation. Toolshero. Web.