After Rachel, a costume designer at a movie production company, completed her postgraduation in theater design, she was awarded a pay hike by the company. Which of the following variable pay systems does this scenario best illustrate?

Question

Quizplus · Accepted Answer

Pay for knowledge is a variable pay system that rewards employees for acquiring and demonstrating knowledge and skills that are valuable to the organization. In this case, Rachel's postgraduation in theater design increased her knowledge and skills, which made her more valuable to the company and resulted in a pay hike.

After Rachel, a Costume Designer at a Movie Production Company