Question

Jason works at a call center for an insurance company, and he has been answering calls regarding auto insurance. Recently, he started to attend a training program about home insurance. Upon successful completion of this training program, Jason will be able to handle home insurance questions and queries as well. If this insurance company has a compensation policy that rewards Jason's completion of this training, then what type of pay system does it employ?

A) incentive pay
B) merit pay
C) seniority pay
D) pay-for-knowledge

Answer 1

Answer: D) pay-for-knowledge

Explanation:

Pay-for-knowledge is known to be a form of pay system in which workers after furthering their education and obtaining special academic accomplishment and skill development are recompensed by employers through compensation. The employees after the training get to do more responsibilities and projects in the company due to the new knowledge acquired. Furthermore, this motivates employees to improve their educational attainment and skills. Thus, the form of compensation is usually a higher pay in income.