Competence-based pay systems compensate employees for the different skills or knowledge they possess rather than for the job they hold in a designated job category.

Question

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Competence-based pay systems pay employees based on their skills and knowledge, which may or may not align with their job category. This is in contrast to traditional pay systems that base pay on the job title or category.

Competence-Based Pay Systems Compensate Employees for the Different Skills or Knowledge