Which of the following is a disadvantage of skill-based pay?
A)It is not suited for jobs that require skills to adapt to change in technology.
B)It decreases worker flexibility.
C)It does not give knowledgeable people opportunities to make decisions.
D)It does not help deal with absenteeism or turnover.
E)It may give rise to large new labor costs,but with little payoff.

Question

Quizplus · Accepted Answer

Skill-based pay systems can significantly increase labor costs because they pay employees for the range of skills they have, even if those skills are not always utilized. This can lead to increased payroll expenses without a corresponding increase in productivity or efficiency, hence the potential for "little payoff."

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