Question

Which of the following are considered disadvantages of a skill-based pay system? (Select all that apply.)

a)training programs need to be developed to help employees acquire new skills
b)employees may acquire skills too quickly and top out on the pay scale
c)skills must be described, measured, and assigned monetary values
d)new skills can be difficult to use effectively, resulting in high labor costs

Answer 1

Disadvantages of a skill-based pay system include the need to develop training programs, employees topping out on the pay scale, and the difficulty of effectively using new skills.

Step-by-step explanation:

Disadvantages of a skill-based pay system include:

1. Training programs need to be developed to help employees acquire new skills: Implementing a skill-based pay system requires the company to invest in training programs to develop the necessary skills of employees.
2. Employees may acquire skills too quickly and top out on the pay scale: If employees acquire skills at a faster rate, they may reach the maximum pay scale sooner, limiting their potential for further pay increases.
3. New skills can be difficult to use effectively, resulting in high labor costs: Acquiring new skills does not guarantee that employees will be able to use them effectively, which can increase labor costs.