Pay structures are important for companies in multiple ways. A job-based pay structure is a salary structure that is determined by the job itself. That can be responsibilities or work conditions. Another pay structure is person-focused pay. A person-focused pay structure is based on what the individual brings to the company and what they produce while they’re there.
After researching Microsoft, I believe most of their employees will do better with a person-focused pay structure. To be more specific, a person-focused program Microsoft can use is Technological Innovation. In the book, technological innovation is adapting to the new changes and using them to the best of their ability to help their team. A person-focused pay structure gives employees the ability to develop new skills without going through normal job responsibilities. Employees can also be rewarded when they gain new horizontal and vertical skills.
A summary of Microsoft’s mission statement is that they want to empower people to achieve more. Giving their employees the ability to create their own path helps them determine how they want to spend their time at Microsoft. Microsoft must create a person-focused pay plan that is fair for all pay levels. Each employee at Microsoft is grouped into pay ranges that are currently based on their title. Having a person-focused pay structure gives Microsoft an increased edge when it comes to global competition. Employees will like they control their pay and help them push to be a greater employee.
