Define - Pay Model of Compensation
The compensation pay model is a structural framework to understand, design and examine the compensation system for the employees. The Pay Model of Compensation was developed by George T. Milkovich and Jerry M. Newman in the Year 2002 , refer to Exhibit 1.6 The Pay Model.
That defined the compensation pay model, as a composition of "3 basic building blocks"
- The Compensation Objectives that drives the system
- The Policies that form the foundation of the Compensation system
- The Techniques that make up the Compensation system
Pay Model Picture Source Credit : https://slideplayer.com/slide/6888268/
Now the question arises that
- Why is the Pay model designed? and What are the Objectives of the Pay model?
- What are the Policies under this Pay Model that lay the foundation for the Pay system for the Organization? and How are these policies important?
- What are the Techniques to achieve these objectives and are tied with the Policies?
I will answer them separately in my upcoming blogs.
Thanks for reading this small chunk of information today. But this information is very important from the Business Strategic aspect as the Compensation Pay Model for employees is based on this framework only.
I will catch you soon..
