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Job-Based Pay Structure Limitations

What are some potential limitations of using a job-based pay structure?

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Job-Based Pay Structure Limitations


"Skill-based pay (SBP) is a rapidly spreading pay innovation that compensates for the range, depth and types of employee skills, rather than for the jobs employees perform." (Kim 1999)


The limitations are vast, as employees are put into a pool rather than being judged and receiving monetary advancements based on performance. This type of pay structure is done for all government positions. A job is posted with all of the requirements and the ...

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The solution discusses Job-Based Pay Structure Limitations