In a skill-based pay system,
A) pay ranges are variable, depending on the type of job and pay grade width
B) pay administration is contingent upon the complexity of job evaluation and the pay allocation plan
C) pay is tied to personal competency levels
D) training is necessitated by need rather than employee desire for training
E) all of the above are true

Question

Quizplus · Accepted Answer

In a skill-based pay system, pay is tied to personal competency levels. While pay ranges may be variable and pay administration may depend on job evaluation and pay allocation, the key aspect of skill-based pay is that it rewards employees for acquiring and demonstrating specific skills, rather than just holding a particular job title or role. This incentivizes employees to actively pursue training and development opportunities in order to increase their pay and further develop their skills.

In a Skill-Based Pay System