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    3 P Compansation

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    priya srm
    The 3P compensation concept pays employees based on their position, person, and performance. Pay for position considers the job duties and pays based on education and seniority. Pay for person links pay to an individual's skills, abilities, and competencies regardless of their current job. Pay for performance provides financial rewards based on an assessment of an individual, group, or organization's performance against stated criteria.

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    3 P Compansation

    Uploaded by

    priya srm
    309 views3 pages
    The 3P compensation concept pays employees based on their position, person, and performance. Pay for position considers the job duties and pays based on education and seniority. Pay for person links pay to an individual's skills, abilities, and competencies regardless of their current job. Pay for performance provides financial rewards based on an assessment of an individual, group, or organization's performance against stated criteria.

    Original Description:

    Strategies- 3 - p Concept

    Original Title

    3 p compansation

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    The 3P compensation concept pays employees based on their position, person, and performance. Pay for position considers the job duties and pays based on education and seniority. Pay for person links pay to an individual's skills, abilities, and competencies regardless of their current job. Pay for performance provides financial rewards based on an assessment of an individual, group, or organization's performance against stated criteria.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    309 views3 pages

    3 P Compansation

    Uploaded by

    priya srm
    The 3P compensation concept pays employees based on their position, person, and performance. Pay for position considers the job duties and pays based on education and seniority. Pay for person links pay to an individual's skills, abilities, and competencies regardless of their current job. Pay for performance provides financial rewards based on an assessment of an individual, group, or organization's performance against stated criteria.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 3

    3-p concept in compensation

    3P Compensation is a system designed to pay salaries according to employee's


    merit and performance in order to create fairness, encouragement in company
    helping each employee maximize his abilities in works, contributing to company
    development.

    P1- Position

    P2- Person

    P3- Performance.

    3P Compensation Concept:

    Management of any organization considers 3 parameters while deciding salary and


    incentives

    1.Pay for position


    2.Pay for person
    3.Pay for performance

    Pay for Position

    is a more traditional pay structure in which each position is assigned a pay range
    based on the job duties and pay is based on education and seniority. In other words,
    pay is centered on the job or position and not on the person.

    Pay for position, Position based pay or Job-based pay, pays employees for the job
    to which they are assigned, regardless of the skills they possess.

    Employee compensation is set in broadband based on qualifications, education,


    training & experience

    It reduces different compensation categories to broad compensation bands,


    grouping jobs together by common characteristic

    Pay for Person


    Pay for Person or Person focused pay or Skill-based pay or Knowledge-based pay
    or Competency-based pay structures link pay to the depth or breadth of the skills,
    abilities, competency and knowledge a person acquires and applies to the work.

    Structures based on skill, pay individuals for all the skills for which they have been
    certified regardless of whether the work they are doing requires all or just a few of
    those particular skills.

    The wage is attached to the person.

    The pay increases are usually tied to three types of skills: - horizontal skills, which
    involve a broadening of skills in terms of the range of tasks - vertical skills, which
    involve acquiring skills of a higher level - depth skills, which involve a high level
    of skills in specialised areas relating to the same job.

    A job rotation is used to fill in temporary gaps in the workforce. Because skill-
    based pay encourages and rewards a broad range of skills, the employee becomes
    multi-skilled and more flexible and valuable; Take into consideration the person’s
    capabilities

    Pay for person takes into account the demonstrable characteristics of a person,
    including knowledge, skills, competency and behaviors, that enable performance

    it also incorporates market based pay approach, It considers the market demand of
    a person’s unique skills and experience

    Experience in setting a pay level that is both equitable and competitive

    Identify and pay market premium for competencies/skill in short supply in the
    market

    Pay individuals based on their competency/skill match with position

    Pay for Performance

    Performance-based pay is a financial reward system for employees where some or


    all of their monetary compensation is related to how their performance is assessed
    relative to stated criteria. The criteria for performance-related pay scheme may be
    based on individual, group or organizational performance, or on a mixture of them.
    Individual-based criteria would require – - individual goal-setting, - an appropriate
    performance appraisal system - individual training to increase job knowledge &
    skills and - the individual should have a large measure of control over his/her own
    performance

    Team-based criteria are appropriate where individual performance is difficult to


    measure, or where there is a need for a corporate culture to promote team values
    and cooperation.

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