1. WHAT IS VALUED
JOB-BASED PAY
VS.
SKILL-BASED PAY
A COMPARISON
PAY STRUCTURE
PAY INCREASES
EMPLOYEE'S FOCUS
Job based Skill based
Based on job
performed
(internal criteria)
Based on skills
certifications
(internally &
externally)
MANAGER'S FOCUS
Job based Skill based
Promotion Skill aquisiton
Job based Skill based
assignments/
tasks of the job
Skill sets of the
employee
Job based Skill based
link employees to
work
Promotion and
placement
Control costs via
pay for job and
budget increase
Utilize skills
efficently
Provide training
Control costs via
training
certification, and
work assignments
Job based Skill based
Seek promotions,
expansion of
responsibilities to
earn more pay
enhance existing
skills or acquire
new skills to earn
additional pay