What compensation system pays employees based on the number of personal skills, competencies, or job certifications they master rather than job title alone?
APiece-Rate Pay
BSkill-Based Pay / Knowledge Pay
CMerit Pay
DProfit Sharing
Explanation
• Skill-Based Pay (or Knowledge-Based Pay) rewards workers for acquiring additional job-related skills, certifications, and multi-functional mastery.
• Encourages workforce flexibility, cross-training, and continuous learning.
• Piece-rate pay pays directly per unit of output produced.
Exam Relevance
- Topic: Compensation & Benefits
- Subtopic: Pay Systems

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