Skill‐based pay is one of the most widely‐implemented, poorly understood and under‐researched human resource practices in use today. Part of the problem is that “skill‐based pay” is not a single system, but rather a family of loosely related pay systems that have different origins, distinct traditions, and suitability to different types of organizations. Opinions about skill‐based pay often miss the mark because they apply to one form, without appreciation that other forms may be appropriate for a given organization. This article provides a detailed discussion of its different forms and purposes.
Skill-Based Pay: HR's Role (PDF)