Person-focused pay programs are not really new. Various early forms of these programs appeared in the 1980s. Organizational adoption was slow partly because they can very quickly drive labor costs up. Why is this changing? Explain the reasons for this change. Consider Susan Jackson’s situation. Susan is a young professional in her 8th year of her technological manufacturing career since graduating from college. She is frustrated by the lack of opportunity to showcase her talent and skillset. Susan feels like she has so much more to offer than is asked of her. Consequently, she is once again on the job market. If she succeeds in her search, Susan will join her third organization in 8 years. Explain why a job with a person-focused pay program might help alleviate her frustration. Finally, what are the potential advantages and disadvantages of these programs for the organization? For the employee?
