Knowledge-based Pay

What is Knowledge-based Pay ?

  
‘Knowledge-based Pay’ refers to a system of compensating an employee based on their knowledge and skills along with the time they spend working. It works like a reward for gaining any specific job related skills which also benefits the company in the long run.
 
It is rewarding for the employee too since they are gaining extra skills and knowledge while also getting paid for the same. As it works like an incentive for the employee, they will also be motivated to gain more skills.
 
It also encourages personal growth and development, which will result in a more efficient company. However, there has also been criticism that an employee having more skill would be paid more for doing the same job than a lower skilled employee, which would give rise to unwanted competition.

More HR Terms

Administrative Services Only

What is Administrative Services Only ?    ‘Administrative Services Only’ is the practice of hiring another company to provide administrative services for employee benefits while

Expenses

What are Expenses?   With respect to HR, ‘Expenses’ refer to the additional expenses incurred by the employees while performing their daily duties, which are

Employee Relations

What is Employee Relations?   ‘Employee Relations’ is the term used to define the efforts taken by an employer in maintaining a healthy relationship with

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