Managing Employee Performance and Reward

Table of Contents


The process of job analysis has some potential value for managers and employees. By collecting information about jobs, employers can gather data that is directly connected with people’s primary responsibilities and objectives. Moreover, such an analysis allows one to predict possible future risks of a particular job and assess which skills would an employee need to achieve the best possible performance. While job analysis may take a significant amount of time for one to complete, it offers a comprehensive profile of jobs and makes a number of accompanying actions more accessible (Milkovich, Newman, & Gerhart, 2013). For example, employee training can be easier to develop with a prepared plan (Morgeson, Spitzmuller, Garza, & Campion, 2016). A possible alternative to job analysis is job evaluation which does not use specifics of each job but its relative value to the organization.


O*NET Online offers a variety of uses for managers and employees. For employees, the service can become a foundation for finding the most suitable job according to one’s experience, skills, and personal attributes (O*NET Resource Center, 2018). One may assess which knowledge should be acquired before job searching and which qualities can help secure a desirable position. Managers can use this platform to evaluate the fit of their future employees to the job. Moreover, both parties can see which areas are becoming more popular or promising on the market, which may contribute to the opening of hew vacancies and better job descriptions. However, although O*NET has a significant amount of information about various jobs, it may not account for some rare occupations, specific situations, and unusual tasks. Moreover, one’s assessment of all skills and requirements is somewhat standardized, which may not correspond to someone’s individual needs.


Both job-based and knowledge-based pay systems have their benefits and drawbacks. While the job-based option is more traditional and predictable for employers, it is also constrained (Shields et al., 2015). This method does not offer employees any possible incentives to become better workers and learn new skills needed for the job. Therefore, the performance of the company may suffer due to the lack of effort. On the other hand, knowledge or skill-based pay may attract more successful and determined individuals with potential for growth and professional development. While it may be more expensive for a company to use this system, it also can result in a better team of ambitious and trained workers with a competitive spirit. Thus, the second option seems to be more compelling for many industries, where skills are highly valued.


It is possible that the issue of unequal pay still exists because this problem is not recognized as a real one. The regulation that prohibits unequal pay was set many years ago which often serves as an argument of the gender gap not existing in the workplace anymore. However, some ways of exclusion still can divide men and women and make their earnings different. For example, some industries and fields are still predominantly male or female due to people’s past choices of colleges and schools. As the access to higher-paid jobs is often restricted not only by skill but also a level of discrimination, some women may be discouraged from working in male-dominated industries (Fitzpatrick, 2010). Moreover, the issue of family support and child care also places women in a disadvantageous position as many organizations do not offer any time for fathers to spend time with newborns and young children.


One of the principal benefits of outsourcing is the ability to find and hire highly-skilled specialists with specific knowledge and equipment. Here, the decision to outsource can help the company to acquire well-trained professionals that may be hard to recruit elsewhere (IRS, 2017). Some vendors may perform complex tasks and solve difficult questions which is why it may be advantageous to establish a business relationship with them. Moreover, outsourcing may be cheaper for the company as it reduces recruitment costs for searching and training new hires. A shift of responsibilities is also possible with outsourcing that lowers the risks of the company and makes the operations more secure. On the other hand, outsourcing has some drawbacks. It limits the capabilities of the firm and wastes the possibility of obtaining new knowledge. Workers that could have been taught some new skills are not offered this opportunity if the task is outsourced to someone else. Furthermore, outsourcing may lead to job cuts which is mostly disadvantageous for employees.


The shift from base to variable pay may be seen as beneficial because it can encourage executives to engage in the processes of their companies and value performance more than before. They also may focus on innovation and development which may help them and their organizations as well. Variable pay places workers and employers in a more competitive environment making skill and performance the primary focus of all outcomes. However, the levels of CEO pay should be assessed not to allocate too much money to one executive person. While the choice of variable pay can make a CEO more invested in the success of the company, it can also increase the pressure on workers to perform and deliver better results. Thus, such behaviors should be monitored by the board of shareholders and by communicating with employees.


Fitzpatrick, L. (2010). Why do women still earn less than men? Time. Web.

IRS. (2017). Independent contractor defined. Web.

Milkovich, G., Newman, J., & Gerhart, B. (2013). Compensation (11th ed.). New York, NY: McGraw-Hill.

Morgeson, F. P., Spitzmuller, M., Garza, A. S., & Campion, M. A. (2016). Pay attention! The liabilities of respondent experience and carelessness when making job analysis judgments. Journal of Management, 42(7), 1904-1933.

O*NET Resource Center. (2018). Overview. Web.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P.,… Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices, strategies (2nd ed.). Cambridge, UK: Cambridge University Press.