Competency-based pay plans are increasingly common as employees shift from traditional jobs to variable work assignments.

Question

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Competency-based pay is a compensation plan that rewards employees for the capabilities they attain.The disappearance of the traditional job provides the primary rationale for the shift towards this system.Today,employees are said to have variable and unstable work assignments,with roles that cannot be assigned a valid pay rate in traditional job evaluation plans.

Competency-Based Pay Plans Are Increasingly Common as Employees Shift from Traditional