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 multiskilled employees.
E)It gives rise to centralization of decision-making.

Question

Quizplus · Accepted Answer

Skill-based pay systems provide a strong incentive for employees to learn and improve their skills, which helps in making alternative arrangements for employee turnover. This ensures that there is always a skilled workforce available to take on different tasks and responsibilities. Skill-based pay does not necessarily reduce worker flexibility nor does it lead to a shortage of multiskilled employees. It may, however, result in leaner staffing levels as employees are expected to be more productive and efficient. It also does not necessarily give rise to centralization of decision-making.

Which of the Following Is True of Skill-Based Pay