In class we discussed current challenges that occur from job-based pay structures. One of the challenges is that job-based pay structures can reinforce top-down decision-making as well as status differentials. Another problem that comes up is the system encourages promotion-seeking behavior, but discourages lateral movement. The last challenge I want to mention is that job-based structure may not reward desired behaviors, where the knowledge, skills, and abilities needed yesterday may not be helpful today and tomorrow.
The challenge of reinforcing top-down decision-making as well as status differentials is that not everyone is looked at equal. This makes a climate tense between different levels of the organization. The next problem that job-based pay structures encourages promotion-seeking behavior, but discourages lateral movement is that employees will only want to move up the latter to get a better pay, but if there is nowhere else for them to go up, they will most likely leave the company. The last challenge I want to discuss is that it may not reward desired behaviors, where the knowledge, skills, and abilities needed yesterday may not be helpful today and tomorrow is problematic. This is a challenge because if someone has a lot of knowledge, skills, and abilities to offer, they will not be compensated for that rather just paid strictly on their position.
I bring up these challenges because I myself am in a position of determining a salary. My current employer has offered me the opportunity to present to them the salary I would like to make. This has been a very stressful situation because I am not certain how they want me to base my salary on. If it was solely on job-based structure, then I would be able to look online what the average salary is and go off of that. Only thing is, I have had over a year experience in HR, created a lot of new forms and policies, and implemented new processes for new hires. I think the experience and changes I have already made within the company is worth being compensated for as well as a base salary based on the job.
katiecharles 