Designing Separate Pay Programs Recognizing Individual Contribution

This essay discusses the importance of having separate pay programs for different units within an organization, especially when those units have varying levels of technological advancement and operational maturity. It emphasizes that contributions should be defined based on factors like work complexity, energy required, innovation, and returns. The essay argues that established units should have higher pay programs to reward senior employees, while newer units can design their programs based on specific goals, such as attracting top professionals with performance-based pay or retaining new employees with seniority-based pay. The ultimate goal is to create a fair and motivating compensation structure that aligns with each unit's unique objectives and challenges.

Recognizing an individual’s contribution
Student’s name
Institution Affiliation(s)

Pay Programs for Recognizing an Individual’s Contribution
From the information provided in the question, the two units are completely different
and therefore should have separate pay programs all together for recognizing an individual’s
contribution.
Contributions can be defined on the basis of work and their complication level, Level
of the Energy required to complete, Innovation, Technology, Comfortability, Returns, Level
of involvement. There should be higher pay for high skills and abilities (Capobianco, 2014).
The first unit is not aware of any technologies and ideas but the second unit is trying
to implement new technologies which can overcome the effects of the drug as well, so it’s
automatic that both pay programs will differ. The second unit needs a secure and safe
environment so there will definitely be a need for more investment.
The unit that has been existence for a long period should have higher pay programs to
ensure its dominance. Since it has established most of its products and services and has been
in operation for long, then its senior employees need to be well rewarded.
Then this new unit will want to determine individual pay program based on what it
wants to achieve, if it wants top professionals to apply they will new higher wages and great
benefits with a performance-based pay program (Tessema, Ready & Embaye, 2013). The
new unit may also want to try a seniority-based pay in order to retain as many of the new
employees as possible to save on retraining during the first several years and eventually
switch to another payment program that will weed out the low performers.

References
Capobianco, E. (2014, October 9). Rewards and Recognition: The Keys to Motivating Your
Team. Retrieved March 28, 2019, from The Next Web website:
https://thenextweb.com/entrepreneur/2014/10/09/recognizing-your-employees/
Tessema, M. T., Ready, K. J., & Embaye, A. B. (2013). The Effects of Employee
Recognition, Pay, and Benefits on Job Satisfaction: Cross Country Evidence. 12.
Retrieved March 28, 2019, from
https://pdfs.semanticscholar.org/d999/306d685a85cbe2232a844f8415a689e985f0.pdf