A skill-based approach to compensation is built on which of the following characteristics?
A) Workers are paid for performing well-defined jobs using vertical skills.
B) The greater the variety of job-related skills a worker possesses, the more he/she should be paid.
C) Each job must be very clearly described with highly defined tasks and skill requirements.
D) The primary objective is to allocate pay so that the most important jobs command the highest pay.

Question

Quizplus · Accepted Answer

A skill-based approach to compensation is built on the characteristic that the greater the variety of job-related skills a worker possesses, the more he/she should be paid. This means that the pay for employees is based on the range, depth, and types of skills that they acquire and use in their jobs. Other factors like experience, education, and seniority may also be considered, but the primary focus is on skill levels. Therefore, choice B is the correct answer. Although the other options (A, C, and D) are also important in a skill-based approach to compensation, they do not capture the core characteristic of paying employees based on their skills.

A Skill-Based Approach to Compensation Is Built on Which of the Following