Scenario 9.1
Denton and Denton Inc. (D&D Inc.)is a small graphic design firm that designs tray liners for various small food chains across Canada and a major chain in the USA. D&D currently has 20 employees who are paid hourly rates for time worked, not projects completed. These workers consider themselves valuable, knowledge-based workers, and now that the company is expanding its client base they are not happy with the current pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing the pay ranges for four job bands.
-Refer to Scenario 9.1. Which of the following is NOT a benefit of competence-based pay system?
A) greater productivity
B) decreased compensation costs
C) improved staffing flexibility to meet production or service demands
D) reduced effects of absenteeism and turnover

Question

Quizplus · Accepted Answer

Competence-based pay system is a pay structure that links pay to the skills, knowledge, and competencies that an employee acquires and demonstrates on the job. It does not aim to decrease compensation costs, but rather to ensure that employees are rewarded for their skills and contributions to the organization. The benefits of a competence-based pay system include greater productivity, improved staffing flexibility to meet production or service demands, and reduced effects of absenteeism and turnover.

Scenario 9.1 Denton and Denton Inc. (D&D Inc.)is a Small Graphic Design