One reason organizations often opt out of flat pay rates in favor of differential pay rates, is because job applicants are similar in KSAO quality.

Question

Quizplus · Accepted Answer

Differential pay rates are often used when there are differences in KSAO quality among job applicants or employees. This allows for higher pay rates for those who possess the necessary skills, knowledge, abilities, and other characteristics required for the job, and encourages more qualified candidates to apply for the position. Flat pay rates may not be effective in attracting or retaining high-quality employees if there is little differentiation in KSAOs among job applicants.

One Reason Organizations Often Opt Out of Flat Pay Rates