Skill-based pay plans:
A) Discourage employees from learning new jobs
B) Create a psychological distance between employees and managers
C) Discourage poor performers from leaving the organisation
D) Can be expensive because they motivate employees to spend more time learning new jobs

Question

Quizplus · Accepted Answer

Skill-based pay plans incentivize employees to learn and develop new skills, which can be time-consuming and costly for the organization as it requires training and development resources. Therefore, the correct choice is D. Choices A, B, and C are incorrect because skill-based pay plans actually encourage employees to learn new jobs, foster closer relationships between employees and managers, and incentivize poor performers to leave the organization to pursue roles that align better with their skill sets.

Skill-Based Pay Plans