An organization can benefit from a properly designed and implemented competency-based pay system through
A) lower overall labor costs.
B) reduction of overtime costs by the move to an all-salaried workforce.
C) greater workforce skills and knowledge.
D) higher employee satisfaction with pay.

Question

Quizplus · Accepted Answer

A competency-based pay system encourages employees to develop and improve their skills and knowledge in order to earn higher pay. This can lead to a more skilled and knowledgeable workforce, which can benefit the organization in various ways such as increased productivity, better customer service, and improved quality of products or services.

Answer: D 
 Competency-based pay system can lead to higher employee satisfaction with pay since employees can see a clear link between their skills and knowledge and their pay. This can improve employee engagement and reduce turnover, which can benefit the organization in terms of reduced hiring and training costs as well as improved productivity and customer service.

An Organization Can Benefit from a Properly Designed and Implemented