Knowledge worker compensation Compensation Management

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Knowledge worker compensation

• Knowledge based pay is a

system of payment where

employees are

compensated based on their

individual skill level and

education attainment.

Knowledge worker compensation

• Under this system, employees are rewarded for reaching certain goals in education, training and skill development. Knowledge-based pay systems provide incentive for employees to improve their skill set and education.

Knowledge worker compensation

• With job-based pay, employee salaries are established based on job analysis and the requirements of a given position. With knowledge-based pay, more emphasis is placed on the ability of the employee to do the job.

Knowledge worker compensation

• Knowledge-based pay rewards employees who set goals to learn new skills and acquire new knowledge. Ambitious, self-motivated employees typically prefer this approach because it gives them a reason to focus on career development.

Knowledge worker compensation

• It also provides a mechanism to reward employees who want to perform at a higher level. When companies pay for knowledge and skill development, they contribute to a systemic raising of the bar for performance across all jobs.

Knowledge worker compensation

• Because knowledge-based pay is inherently more competitive within job ranks, it may cause conflict among colleagues and co-workers. Colleagues may feel slighted or bitter toward you if you make more money performing similar tasks.

Knowledge worker compensation

• You may also feel underpaid and undervalued if you aren't paid the same as someone doing the same job at a competing company. Plus, with a knowledge based pay system, you have to spend time to take classes or training and continue to develop skills if you want to make more money.