Final answer:
Flat-rate pay is a compensation system where each job incumbent receives the same rate of pay, not influenced by performance or seniority, promoting economic equality regardless of individual skills, experience, or education.
Step-by-step explanation:
The concept described in the question refers to a compensation system known as Flat-rate pay. This pay structure provides each incumbent of a job with the same rate of pay, regardless of individual performance or seniority. It contrasts with performance-based or merit-based pay, where compensation is linked to the employee's performance, and time-based step-rate pay where increments are received over time based on tenure. Civil servants, for instance, receive pay based on the U.S. Federal General Schedule, which is a pay schedule that aligns salaries with different grades and steps, indicating levels of competency, education, and experience. Pay equity, under the doctrine that jobs requiring equivalent skill, training, or education deserve equal pay, is another principle that influences wages. Factors such as talent scarcity and economic conditions also affect compensation. Nonetheless, flat-rate pay focuses on economic equality, disregarding individual credentials.