A Pattern of Competency - Oriented Compensation System of Employees

Abstract

The purpose of this research is to propose a competency-Compensation Assessment System Through Succession Planning. Having reviewed the research literature as well as experts' opinions, the primary model was proposed and then, the final research model was presented using the experts' opinions. The study was carried out via mixed methods research. The statistical population included the experts and academic specialists in the field of human resources and senior managers of Bank Saderat Iran in the qualitative section and experts and managers at various levels of Bank Saderat in the quantitative section. Non-judgmental purposive sampling and random stratified sampling were employed in the qualitative and quantitative sections respectively. In the qualitative section, 17 persons participated in the interview and in the quantitative section, 400 persons participated as the research sample. Tools of data collection were interview and researcher self-made questionnaire. Reliability of the questionnaire was calculated equal to 0.93 and its validity was approved. The results of the survey in the qualitative section illustrate that there are 25 components for competency-oriented compensation system in five dimensions including competency, foresight, flexibility, justice, and comprehensiveness. In the quantitative section, the findings showed that competency has the highest effect on employees' competency-oriented compensation. Likewise, among the secondary components in the subset of competency dimension, "absorption, retaining and development of organization's talents" has the highest effect on employees' competency-oriented compensation system. T-statistic of this component is equal to 11.82 and its path coefficient is equal to 0.8.

Keywords

• oriented compensation system
• competency-oriented compensation system
• competency management
• succession planning