Attached.

Running head: HR COMPETENCY

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HR Competency
Student’s name
Institution
Date

HR COMPETENCY

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Consider competency practices such as skill-competency-based plans, broad banding,
market pricing, and pay-for-performance plans. Discuss how each impacts the pay
discrimination debate.
Pay discrimination remains one of the most controversial topics when it comes to
compensation practices. Jobs are considered equal if they require equal skill, effort, and
responsibility and are performed under similar working conditions (Milkovich, Newman, &
Gerhart, 2014). Ensuring that the human resource department comes up with a compensation
system which ensures effective pay while at the same time ensuring that employees are not
discriminated is important. According to Arthur (2015), organizations use competency-based pay
structures to reward employees based on their skills, knowledge, and experience rather than the
position they hold. By adopting a competency-based approach in rewarding employees,
employers seek to motivate employees, encourage them to build on their skills, and to aspire
them. However, some of the different competency practices used in determining pay have been
termed to be discriminative. This is because these plans advocate for the compensation of
employees differently from each other.
Skill-competency-based plans are those compensation plans which considers both
individual skills and competency when coming up with pays and benefits. According to Gerek
and Becker (2012), skill-based systems base compensation on individual skills with pay, with
those with advanced skills earning more compared to those at a novice level. On the other hand,
c...