1998
DOI: 10.1177/088636879803000505
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Competency-Based Pay: A Concept in Evolution

Abstract: Competency-based pay has become the focus of much heated debate today. While its advocates assert it achieves precisely measurable benefits, its opponents argue that it tends to lead to unfair, invalid, and discriminatory outcomes. Among companies that have implemented competency-based pay, there is evidence that the failure rate is relatively high. Over the next few years however, with the growing need to emphasize employee development, the authors expect to see a major movement toward formal competency-based… Show more

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Cited by 52 publications
(18 citation statements)
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“…Employees could be measured against the competency framework, and individual strengths and weakness identified so that future training and development could be planned. Competency-based pay is often implemented in the context of a performance-based reward systems (Cira and Benjamin, 1998) and can also be linked to other reward elements (Cofsky, 1993). Thus, applying this competency framework to these key HRM activities has the potential to improve the ways in which organisations manage, develop and retain their key managerial resources.…”
Section: Discussionmentioning
confidence: 99%
“…Employees could be measured against the competency framework, and individual strengths and weakness identified so that future training and development could be planned. Competency-based pay is often implemented in the context of a performance-based reward systems (Cira and Benjamin, 1998) and can also be linked to other reward elements (Cofsky, 1993). Thus, applying this competency framework to these key HRM activities has the potential to improve the ways in which organisations manage, develop and retain their key managerial resources.…”
Section: Discussionmentioning
confidence: 99%
“…Secondly, organizations might consider implementing competency-or skill-based pay systems (Gerhart & Milkovich, 1992) where employees receive enhanced pay levels as they acquire new skills (e.g. programming) and/or competencies (leadership) that are job-related and potentially improve their job performance (Cira & Benjamin, 1998). This complements our view that pay level reflects employee value to the organization: as employees increase their value to the organization, their pay level should increase.…”
Section: Discussionmentioning
confidence: 99%
“…McClelland argued that it was possible to identify variables that could predict effectiveness in job performance and/or success in life in general. Cira and Benjamin (1998) add that these competencies are behaviours that are exhibited more consistently and effectively by high performers. Companies such as General Electric, IBM, Microsoft and Monster.com are frequent referents for public sector organizations seeking competency models -particularly leadership competency models.…”
Section: Contemporary Definitions Of Core Competencies: Where Do Theymentioning
confidence: 95%