In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman discusses the use of skilled-based pay as a type incentive with an organization. He states that skill-based pay is compensation based on work-related skills gained as employees complete training programs or other activities to become qualified to perform additional work tasks.
These workers are usually paid at the rate associated with the highest paying job for which they are now qualified (sometimes regardless of whether they actually perform those tasks on any given day).
Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. For the past 18 years, he has served as an independent consultant for a broad spectrum of regional, national, and international companies, providing compensation, performance, organizational planning, and reward-system design services. He can be reached at firstname.lastname@example.org.