Which performance-based pay system assumes that employees who know more are more valuable to the firm and deserve to be rewarded for their efforts in acquiring new skills?
A) variable pay
B) merit pay
C) lump sum pay
D) skill-based pay

Question

Quizplus · Accepted Answer

D)Skill-based pay is a system that compensates employees for their job-related skills and knowledge,rather than his or her present job.The system assumes that employees who know more are more valuable to the firm and,therefore,they deserve a reward for their efforts in acquiring new skills.

Which Performance-Based Pay System Assumes That Employees Who Know More