Competency Based Pay is a compensation system where pay is tied to an employee’s demonstrated skills, knowledge, and abilities rather than just job title or seniority.
- What is competency based pay?
Answer: It is a pay system linking compensation to demonstrated skills and abilities. - What are the benefits of competency based pay?
Answer: It motivates skill development and rewards performance. - How is competency based pay implemented?
Answer: It is implemented by assessing competencies and adjusting pay accordingly. - What are the challenges of this pay system?
Answer: Challenges include fair assessment and potential inequity perceptions. - Who is eligible for competency based pay?
Answer: It applies to employees in roles where skills directly impact performance.
