The most important factor determining success of a skill-based pay plan is:
A) its impact on labor costs.
B) how well it aligns with the organization strategy.
C) the stakeholder satisfaction with the plan.
D) its effect on productivity.

Question

Quizplus · Accepted Answer

The most important factor determining the success of a skill-based pay plan is how well it aligns with the organization strategy. This ensures that the plan is linked to the overall objectives of the organization and helps to achieve them. Labor costs, stakeholder satisfaction, and productivity are important factors as well, but they are subordinate to the strategic alignment of the plan.

The Most Important Factor Determining Success of a Skill-Based Pay