Setting the Price of an Employee in the Organization Different Approaches
Setting the Price of an Employee in the Organization Different Approaches

Summary/Abstract: The paper analyses the approaches in setting the price of an employee from the point of view of an employer and an employee, discussing and evaluating the main human resource management and pricing theory questions. The price of an employee is understood as a result of the exchange process between an employer and an employee. The authors demonstrate that the main reward management approaches in human resource management are mostly generated in favour of the organization (employer) whereas the price of an employee is not related to his labour results. Referring to the main pricing theory approaches there are proposed the following patterns in setting the price of an employee: 1) supporting the organization’s (employer’s) attitude towards the employee pricing within the final consumer wants satisfaction; 2) supporting the employee’s position towards his pricing, accounting all expenses made on his qualification formation and maintenance and accounting future payments that makes the investment to pay back.

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