Which of the following is a disadvantage of skill-based pay systems?
A) It makes organizations inflexible.
B) It reduces employee empowerment.
C) It may result in paying employees for skills they don't use.
D) It reduces opportunities for promoting employees.
E) It limits the number of pay levels by delayering.

Question

Quizplus · Accepted Answer

Skill-based pay systems may result in paying employees for skills they don't use, leading to inefficiency and increased labor costs. This disadvantage can be particularly significant in rapidly changing industries where skills become outdated quickly. The other options (A, B, D, and E) are not necessarily disadvantages of skill-based pay systems or may even be advantages in some contexts.

Which of the Following Is a Disadvantage of Skill-Based Pay