Knowledge Based Pay
Knowledge-based pay is a term that relies on an individual’s desire to enhance their knowledge to raise their income or other benefits. When an employee’s knowledge base grows, he or she will be able to take on more difficult and profitable assignments on behalf of the organization.
Once in operation, a knowledge-based compensation system will enable employees to develop their job skills. When an individual advance to the next stage of schooling, he or she is often given a specific pay raise. The method could be one-tiered or have several steps to complete.
Knowledge-based compensation schemes can motivate people to become lifelong learners, which can help a business stay competitive. As a result of the high-quality workmanship, this will lead to more creativity, longer tenure of professional workers, and higher sales.