The primary determinate of rate of pay is the kind of job an employee performance. Different jobs require different kind and levels of skill, and these skills have varying levels of value to the organization. Typically, the higher the skill level, the higher the pay. Because employees’ levels of skills trend to affect work efficiency and effectiveness, many organizations have implemented Skill-based pay systems (SBP), which reward employees for the job skills and competencies they can demonstrate. In a skill-based pay system, an employee’s job title does not define his or her pay category; skills do. Skill-based pay systems seem to mesh nicely with the changing nature of jobs and the new world of work