Public and private sectors pay initiatives
Different local and state governments have various pay initiatives that help in compensating the employees on a fair basis. According to Lewis, the public and private organizations also have their schemes of compensating their employees (Lewis et al. 2018). It is upon the management of the different organizations to ensure that the initiatives are per the stipulated regulations and that they do not give rise to conflicts at the workplace. It is a known fact that payment is a crucial aspect in an organization as it affects multiple departments, including the finance department, the human resource department, and the overall management of the firm. A fair pay initiative is a motivation source for any employee, and a motivated employee gives his best at the workplace, which in turn improves the productivity of the firm. There is a need for achieving parity in pay in the private sector, an aspect that most governments work towards achieving (Lewis et al. 2018). This essay has a focus on the performance-based pay initiatives both at the state and federal level, and their merits and demerits in different types of organizations.
Performance-based pay initiatives
The initiatives are such that an employee gets paid for the work done and qualifications and not on the stipulated hourly wage. The first initiative is the critical position pay that calls for an agency head to request a salary review in conjunction with the office dealing with Budget and Management to fix up a basic pay rate for some positions that require much expertise in different fields. The fields include the scientific field, the administrative field, the professional field, and the technical field. The successful accomplishment of these duties leads to the achievement of the agency mission. The different areas get paid according to their level of performance, whether in level I and II. It is worth noting that people performing these functions are likely to be retained by the agency upon the completion of their terms of service.
The second initiative is the retention inventive based on an individual employee. Any agency has the room to pay a current employee in a case where it decides that the employee has high qualifications, and his job performance is high and efficient. It may be essential to retain the employee if there is a likelihood that the employee may leave the federal service when the incentive is not made available. The incentive may be a percentage of his or her basic salary, with a maximum percentage of 25% (Langbein and Stazyk, 2018). The incentives are vital in ensuring that the agency does not lose valuable employees.
Another initiative related to the initiative discussed above is the retention incentives for the employees’ groups. The initiative above handles the individual employees while this initiative handles a group of employees that have unique qualifications and exceptional job performance levels. Their services may prove to be essential, motivating their retention. The target group’s incentive may be in such a way that it should not exceed 10% of their basic salary.
The higher annual leave extension incentive has a focus on the equivalent pay systems. The senior employees that are professional and perform well are entitled to this incentive regardless of their length of service. The annual accrual rate is essential in given conditions for these senior employees. These may not be all the initiatives, but they provide a depiction of the whole range of initiatives.
The merits and demerits of pay for performance initiatives
There are many advantages and disadvantages of performance-based pay initiatives. All of them are felt across public and non-profit organizations. The first advantage is that it leads to the motivation of the workers. Different people get important satisfaction from the work that they co sider meaningful in their lives. The financial concerns also motivate the workers, and an increased worker’s motivation improves his performance. The initiatives also help in the retention of top talents (Vem et al. 2017). It is an expectation that the top talents in a company can be approached by other employers. When the initiatives exist, it becomes hard for the employees to leave.
The disadvantage is that the measurements are always subjective as employees can easily be measured and quantified. The workers in the administrative roles find these plans to be frustrating, and conflicts may arise. The second disadvantage is that some employees fall out of favor s they find the reviews ineffective. Therefore, both the public and non-profit organizations suffer these disadvantages.
Conclusion
The schemes of payment are essential for most companies as they play crucial roles in determining the productivity of the firm. It is the responsibility for every management of the firms to consider the pay levels of their workers to help motivate and retain them. There is also room for more research to be done to add to the information of this essay.
References
Langbein, L., & Stazyk, E. C. (2018). The anatomy of retention in the US federal government: Exit, voice, or money?. International Public Management Journal, 21(1), 33-52.
Lewis, G. B., Pathak, R., & Galloway, C. S. (2018). Trends in public-private pay parity in state and local governments. Review of Public Personnel Administration, 38(3), 303-331.
Vem, J. L., Pearce, A. M., & Goyit, G. M. (2017). PERFORMANCE-BASED PAY, ORGANIZATIONAL COMMITMENT, AND COMPETITIVE ADVANTAGE: A CONCEPTUAL FRAMEWORK. International Journal of Management Science Research, 3(1), 124.