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Skill Based Pay Systems

Jan LJan L 3 Posts
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Greetings All! I am the HR Manager for a non-union manufacturing facility in Southwestern Illinois. Although I take a look at the Forum almost daily, I have to admit that I've posted only one other question. Thanks to those who provided feedback!

This time, I am looking for help from anyone who has had experience with skill-based pay systems. I would like to hear your thoughts on pros/cons, results, and particularly any recommendations on how to make the transition from a traditional system to one that is skill-based.

This is something our organization has been considering for quite some time. We have taken steps over the last few years that we think have positioned us to move forward with a well-planned system. However, when it comes down to making the change, there is still concern about whether we would be doing the right thing. I'd like to hear the thoughts and experiences of others who have already been down this path.

Thanks in advance for your help!
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  • hhaynalhhaynal 231 Posts
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    Jan,

    Our facility is also non-union mfg and we have a skill-based pay system in process. Give me a call and I will be glad to discuss it with you.

    Heidi
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  • hhaynalhhaynal 231 Posts
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    Our main telephone number is (302)366-0500.
    Heidi
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  • Miriam GeorgeMiriam George 77 Posts
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    When you refer to a Skill-Based Pay System, are you saying that everyone is on this system - Exempt, non-exempt, executives, etc. ???

    Did you create a database to track skills? If not, how did you set it up?
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  • Jan LJan L 3 Posts
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    For now, we are looking at a skill-based system only for our hourly employees. A database would be a necessary part of our tracking system. Our "vision" involves compensating employees for learning and demonstrating competency in both machine and process skills. One of our most difficult challenges (up to this point) has been in finding a way to allow employees to acquire knowledge and skills in a timely and equitable manner. Due to variations in our production processes, it may be fairly easy to become competent in one area, but other areas could take substantially longer. This potential "bottleneck" effect is one of things that we are concerned may hurt the success of the system. Any thoughts on how to work around this would be appreciated.
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