skill-based pay focuses on the knowledge and skills individuals possess, and applies within their work at an organization. The general idea behind skill-based compensation is built around motivating employees to learn multiple skills and, in effect, perform multiple jobs. One of the major advantages of skill-based systems is they increase employee (and organization) flexibility, while simultaneously, decrease the cost of doing business. Because they can assign employees to a diverse set of jobs, an organization staffed with people who have multiple skill sets can more readily handle swift changes in market demands (products, services, etc.), as well as endure employee turnover. Additionally, these organizations can often operate with fewer employees than would be required under traditional job-based systems. Changes in product or service demands that call for increased resources to a particular department or business unit can be handled with existing employees rather than hiring additional staff