Skill-Based Pay
A growing number of organizations, academics, and consultants assert that the conventional job evaluation processes are easily abused and ill-suited to the needs of today’s organizations. Critics contend that conventional job-based pay approaches :
● Support rigid hierarchical organizations that suppress employee motivation and creativity
● Assume that people are commodities that can be made to "fit" defined roles
● Are inappropriate in today's flatter organizations where small, flexible teams multi skilled people make better economic sense than a large number of single-skilled individuals
● Are inappropriate in the service sector, where future success lies in the knowledge workers possess rather than in the jobs they are assigned