An advantage of a skill-based system of pay for compensating teams is that such a system is easy to apply and manage.

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A skill-based system of pay may actually be more complex to apply and manage than a traditional system based simply on job titles and seniority. Skill-based pay requires a thorough understanding of each team member's individual talents and abilities, as well as ongoing monitoring and assessment to ensure that compensation remains equitable and reflective of the team's overall performance.

An Advantage of a Skill-Based System of Pay for Compensating