Performance Standards: How it Helps to Determine Employee's Compensation and Benefits

Performance Standards
In the modern workplace characterized by technology, knowledge-directed workers are extremely valuable to the successes of organizations. Performance standards play an important role in human resource management because they form the basis for appraising employee performance (UC Davis, n.d.). Given this understanding, it is easy to how performance standards are used in determining compensation and benefits to employees. Knowledge-directed workers are members of the organization who contribute to ideas, information, and concepts as opposed to those who contribute manual skills (Schlechter et al., 2015). For companies that use specific technology or software, it needs to have employees who understand how the technology or software works (Weathington & Weathington, 2020). In this case, performance standards can require employees who deal with particular software to attain certain standards. Performance standards can thus drive knowledge-directed workers to attain certain performance levels to help an organization attain its goals.
The use of performance standards will result in a more competitive compensation and benefits strategy becau...