PetFair, a national chain of pet supply stores, employs nearly 1,000 workers. In the past two years, the firm's market share has dropped and employee turnover has increased. The vice president of human resources at PetFair suggests implementing a new compensation policy to improve the firm's performance and retain quality workers. Currently, PetFair employees receive compensation primarily based on years with the firm and job level. Which of the following, if True, best supports the argument that PetFair should implement a competency-based pay system?

Question

Quizplus · Accepted Answer

C) Competency-based pay is a type of skill-based pay plan for professional and managerial employees. The disappearance of the traditional job provides the primary rationale for this change. If managers at PetFair have variable and unstable work assignments, with roles that cannot be assigned a valid pay rate in traditional job evaluation plans, then a competency-based pay system is appropriate.

PetFair, a National Chain of Pet Supply Stores, Employs Nearly