Competency-based pay is a pay structure that compensates employees based on their skill set, knowledge, and experience rather than their job title or position. A competency-based pay plan encourages employees to reach the pay rate that they want by taking charge of improving their skills and work.
What are the 4 steps in a competency-based analysis?
- Step 1 – self assessment. The first step in competency based assessment is for a person to conduct a self-assessment. …
- Step 2 – assessor review. …
- Step 3 – identify development needs. …
- Step 4 – on and off the job learning. …
- Step 5 – re-assessment.
What is competency-based pay explain in detail?
Competency based pay is a compensation system that recognizes employees for the depth, breadth, and types of skills they obtain and experience they apply in the workplace rather than their job title or position. Also known as skill based and knowledge based pay.
