It seems one of the most noticeable changes in the business world today is the diversification of job titles.
The management alone has grown from the coveted CEO to include such things as CFO, CIO and even COO. With such rapid expansion, these titles will hardly be the last to join the roster. This all relates to competency.
Competency to the business world is what discipline is to the academic world. It describes the skill sets individuals have that are beneficial to the company. Because of this, the idea of paying more for competencies in a company is lacking yet it is a popular idea, but how can such a thing even be implemented?
To start, avoid any plans that are complex
Instead of developing a strategy that charts a competency’s training and subsequent advancement through the company followed by adding pay, start with their pay scale. This will keep everything limited to a set budget while ensuring the pay matches the work they are required to do. With such restrictions, only the most important of requirements will be put into play, further streamlining the growth process. Should things go well, additions can be made later. In this case, it is far better to under promise than over promise.
Do not be vague
People care about their pay and are more than willing to increase their competency to improve their value to the company for an increased wage. This, however, is not so readily done when what is required is broad and lacking any sort of means of measurement. General classes on customer service or tech do nothing but muddle an otherwise solid plan. When you require training, know exactly what its impact for the company is now, in the short run and in the long run. This will not only alleviate any stress from unanswerable questions, it will provide a clear path for employees who want to climb the ladder.
Make sure it is championed by all of the higher level executives
Because it is a relatively new system, the higher levels will not be familiar with it, having always been paid for their job and not their talents. This will lead to an initial positive support that inevitably wanes as time progresses. They must be coached on how to continually keep championing it. In addition, set up clear rules and road maps of what employees must do to enhance their skills. Always be willing to speak with employees openly about competency pay.
Though not great for all, competency pay, or pay based on skill, is slowly gaining steam
At the moment, it is muddled based on overly complex designs and poor implementation. With the right planning, the entire idea can be revolutionized and revitalized. Solidified through specifics and reasoning, competency pay can be made to be more than just a new pay scale; it can become the ultimate form of engagement.
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