Compensation programs that compensate employees for the knowledge they possess are known as:
A)competence-based pay plans.
B)performance-based pay plans.
C)merit-based pay plans.
D)seniority-based pay plans.

Question

Quizplus · Accepted Answer

Competence-based pay plans are designed to compensate employees for the specific knowledge or skills they possess, rather than solely based on seniority or performance. This approach is often used for jobs that require high levels of specialized knowledge or expertise, such as IT or engineering, to encourage employees to continuously develop and enhance their skills.

Compensation Programs That Compensate Employees for the Knowledge They Possess