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HR - People Terms - Word Match #4 of 5 (2019)

Karen Burton

For practice of HR Terms dealing with People

Pay compression Situation where an individual's performance on the job is the basis for the amount and timing of pay increases; also called merit pay or performance-based pay.
Pay for performance (P4P or PfP) Job evaluation method that looks at compensable factors (such as skills and working conditions) that reflect how much a job adds value to the organization; points are assigned to each factor and then added to come up with an overall point value for the job.
Pay grades Tool used to provide a job applicant with honest, complete information about a job and the work environment.
Pay range Pay systems in which employee characteristics, rather than the job, determine pay.
Performance appraisal Instruments that collect information on prevailing market compensation and benefits practices (including starting wage rates, base pay, pay ranges, statutory and market cash payments, variable compensation, and paid time off).
Performance bonus Situation where an individual's performance on the job is the basis for the amount and timing of pay increases; also called merit pay or pay for performance.
Performance management Pay based on the quantity of work and outputs that can be accurately measured.
Performance standards Scanning process that searches for environmental forces in political, economic, social, technological, legal, and environmental categories.
Performance-based pay Behaviors and results as defined by an organization to communicate the expectations of management.
Person-based pay Used to group jobs that have approximately the same relative internal or external worth and are paid at the same rate or within the same pay range.
PESTLE analysis Process of measuring and evaluating an employee's adherence to performance standards and providing feedback to the employee.
Pilot programs Interviews designed to probe areas of interest to the interviewer in order to determine how well a job candidate meets the needs of the organization.
Point-factor system Learning/development programs offered initially in a controlled environment with a segment of the target audience.
Productivity-based pay Tools, activities, and processes that an organization uses to manage, maintain, and/or improve the job performance of employees.
Realistic job preview (RJP) Occurs when there is only a small difference in pay between employees regardless of their experience, skills, level, or seniority; also known as salary compression.
Red-circle rates Sets the upper and lower bounds of possible compensation for individuals whose jobs fall within a pay grade.
Remuneration surveys Situations in which employees' pay is above the range maximum.
Selection interviews One-time payment made to an employee; also called a lump-sum increase (LSI).

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