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Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
Pay For Learning Programs
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Pay For Learning Programs


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Pay For Learning Programs

Pay For Learning Programs

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  • Transcript

    • 1. Pay-for-Learning Programs Jason Burhans Penn State University February 14, 2002
    • 2. Overview
      • Pay-for-Learning Programs Defined
      • A Brainstorming Exercise:
      • How can this tool help me in business?
      • How It Works
      • Examples from industry
      • An Exercise
      • Summary
      • Bibliography
    • 3. Pay-for-learning Programs Defined
      • Pay-for-learning Programs are programs that compensate employees for knowledge and skills that they posses rather than for the job that they actually perform.
    • 4. Pay-for-learning Programs Defined (Continued)
      • Pay-for-learning Programs are also known as pay-for-knowledge, skill-based compensation, knowledge-based pay, or pay-for-skill.
    • 5. Brainstorm
      • Take a moment to consider how you or your co-workers salaries might change if a Pay-for-learning program was initiated at your company?
      • How do you think a program like this could improve quality in your profession?
    • 6. Critical elements of a knowledge and skill-based pay system
      • Specification of knowledge and skills
      • Knowledge and skill measurement
      • Training of evaluators
      • Feedback and professional development
      • Development of a staged career system linked to knowledge and skills
      • Linking pay levels to knowledge and skill levels
      • Minimum competencies required for employment
      • Growth expectations over the career (timing and level)
      • Implementation and evaluation
      • Development and design process.
    • 7. Start up Costs
      • Informing and educating employees of new system
      • Training and development costs associated with employees learning new skills
      • Intangible costs
    • 8. Pay-for-Learning Basics
      • Give employees the opportunity to continually develop their skill sets to contribute to the company
      • Provide an environment to foster learning
      • Recognize and reward people for their contributions and advancements.
    • 9. Using Pay-for-Learning Systems
      • These systems allow companies to pay employees for their value to their organization and provides a way for employees to influence their own pay.
      • Implementation is usually done in one of two basic methods.
        • Knowledge-growth systems
        • Multiple Skills systems
    • 10. Knowledge-Growth Systems
      • This method pays employees based upon the range of skills they posses in a single specialty or job classification.
      • It’s Basically a technical skills ladder
      • They are sometimes called “Vertical” systems because pay is tied to the depth of knowledge or skill in a defined job.
    • 11. Multiple Skills Systems
      • Pay progression is tied to the number of different jobs an employee can perform throughout the entire organization
      • Multi-skilled-based systems are sometimes called horizontal systems
      • These promise the benefits of greater labor flexibility and job mobility for employees
    • 12. Benefits of Pay - For - Learning
      • Benefits include increases in the following areas:
        • Job satisfaction
        • Job security
        • Flexibility
        • Communication
        • Problem Solving
    • 13. Concerns With Pay-for-Learning
      • How to pay for more skilled workers
      • Management and Seniority issues when implementing a new promotion system
      • Ensuring quality or productivity improves enough to ensure the return on investment for the new program is worth it
    • 14. Real World Using Pay-for-Learning
      • General Motors
      • Ford Motor Company
      • AT&T
      • Corning
      • Maxwell House
      • Volvo
    • 15. An Exercise
      • Get with a group of two or three other people.
      • Produce a list with all the benefits and disadvantages that you learned here today.
      • Come up with suggestions, based on what you know about Pay – For – Learning programs, on what steps would be needed to start such a plan at your company.
    • 16. Summary
      • Pay for Learning is a quality tool designed to educate and motivate to make employees more knowledgeable and efficient in an attempt to increase overall quality of product and firm
      • Pay for Learning Systems are used in about 5 % – 8 % of corporations in the United States, most of whom are manufacturing firms
      • Pay for Learning Systems are in there infancy, yet have shown good results when backed by the workforce
    • 17. Bibliography
      • Boyett, Joseph H.; Boyett, Jimmie T., 1998. “ The Pay-for- Knowledge Design Workbook” .
      • H.R. Zone, 2000. “What to do about Skill Based Pay?” http:// www. hrzone .com/topics/skill_based_pay.html
      • Kim, Dong-One; Mericle, Kenneth, 1996. “ Skill-Based Pay and Work Reorganization in High Performance Firms”. http://ist- 0
      • Oden, Alan, 1998. ‘Knowledge- and Skill-Based Pay” . h/
      • S. Thomas Foster, 2001. Managing Quality: An Integrative Approach . Upper Saddle River, NJ: Prentice-Hall, Inc. (pgs 415-416)