In skill-based pay systems, employees receive compensation for the range, depth, and types of skills they possess. They are paid for the skill they are capable of using, not for the job they are performing at particular point in time. This course presents the nature of skill-based pay systems. It explains three types of skill-based pay. Then it reviews the use and effects of skill based pay. It discusses some of the reasons why designing a skill-based pay system is more difficult than designing a traditional job-based pay plan. The course provides a framework for understanding skill-based pay system design and implementation issues. It explains an important role of training and learning opportunities. And finally, the course explores in detail the key design issues in skill- based pay systems and their associated design options.
Upon completion of this course participants will be able to design and justify major components of a skill-based pay system.