Question

A producer of mobile aerial work platforms rewards employees for the number of basic skills they can perform rather than for the jobs to which they are assigned. prior to initiating this system, pay increases were based on a merit system. the merit system is still in effect; however, the new program emphasizes continued acquisition of new skills. the new program can be best categorized as _____.

a. retained earning
b. skill-based pay
c. piecework
d. gainsharing
e. hourly wage

Answer 1

The correct answer is letter b, skill based pay or also known as SBP. This is considered as a compensation system by which it rewards employees by providing additional pay in an exchange of having to gain formal certification of the employee’s knowledge, mastery of skills or competencies.