Which of the following is true of skill-based pay?
A)It rarely provides the opportunity for leaner staffing levels.
B)It helps in making alternative arrangements for employee turnover.
C)It reduces worker flexibility.
D)It leads to a shortage of multi-skilled employees.
E)It facilitates the centralization of decision making.

Question

Quizplus · Accepted Answer

An important potential advantage of skill-based pay is its contribution to increased worker flexibility, which in turn facilitates the decentralization of decision making to those who are most knowledgeable. It also provides the opportunity for leaner staffing levels because employee turnover or absenteeism can now be covered by current employees who are multiskilled.

Which of the Following Is True of Skill-Based Pay