Establishing a pay structure is an essential function of any business. Pay structures represent the framework for recognizing differences in employee contributions. It is very important that a firm compensates its employees according to their credentials, knowledge and job performance. Two popular pay structures include person-focused pay and job-based pay. Person-focused pay is based on an employee\u2019s demonstrated mastery of a series of competencies that make them more valuable to the business. On the other hand, job-based pay compensates employees for the job they perform while also considering seniority, merit and incentive pay.<\/p>\n\n\n\n
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The company whose pay structure I chose to research was Amazon. After researching Amazon by reviewing their mission statement and annual report submitted to the SEC, I have come to the conclusion that a person-focused pay structure would be more beneficial for the company. Amazon is one of the big five companies in the United States information technology industry. It focuses primarily on e-commerce but also incorporates digital streaming, artificial intelligence and cloud computing. Their mission is to be the most customer-centric company by improving the customer experiencing through the internet and technology. <\/p>\n\n\n\n
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I believe that Amazon would benefit from a person-focused pay structure because it would provide their employees with job enrichment and security which in turn creates a more intrinsically motivating work environment and greater employee satisfaction. Furthermore, a person-focused pay structure would be preferable because it leads to enhanced job performance, reduced staffing and greater flexibility. These are all essential characteristics for Amazon because they employ a large number of high-level employees that must keep educating themselves as technology continues to evolve. By implementing a person-focused pay structure, Amazon is supporting their employees continued growth and better retaining employees who may be motivated to leave the company. <\/p>\n\n\n\n
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Altogether, I believe that Amazon would greatly benefit from a person-based pay structure because it would empower their employees to continuously improve their skills, knowledge and competencies. Doing so will play a crucial role in achieving Amazon\u2019s mission statement. <\/p>\n","protected":false},"excerpt":{"rendered":"
Establishing a pay structure is an essential function of any business. Pay structures represent the framework for recognizing differences in employee contributions. It is very important that a firm compensates its employees according to their credentials, knowledge and job performance. Two popular pay structures include person-focused pay and job-based pay. Person-focused pay is based on… Continue reading Person-Focused Pay vs Job-Based Pay at Amazon<\/span><\/a><\/p>\n","protected":false},"author":11079,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/posts\/10","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/users\/11079"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/comments?post=10"}],"version-history":[{"count":4,"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/posts\/10\/revisions"}],"predecessor-version":[{"id":15,"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/posts\/10\/revisions\/15"}],"wp:attachment":[{"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/media?parent=10"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/categories?post=10"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.oregonstate.edu\/ba549andrea\/wp-json\/wp\/v2\/tags?post=10"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}