Mind the Skills Gap: Moving From Skills-Based Pay to Skills-Based Reward

The focus on attracting retaining, engaging, and rewarding talent with critical skills will only increase in the rapidly changing world we are living in. Organizations are in the best position to thrive when they understand, build out, and leverage the promise of skills-based reward. This article la...

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Bibliographic Details
Published inCompensation and benefits review Vol. 57; no. 3; pp. 214 - 221
Main Authors Kniebel, Kevin, McMullen, Tom, Miner, Todd
Format Journal Article
LanguageEnglish
Published Los Angeles, CA SAGE Publications 01.06.2025
SAGE PUBLICATIONS, INC
Subjects
Compensation
Hiring
Leverage
Rewards
Skills
reward
skills
skills based reward
pay
compensation
competencies
skills based pay
Online AccessGet full text
ISSN0886-3687
1552-3837
DOI10.1177/08863687251337554

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Summary:The focus on attracting retaining, engaging, and rewarding talent with critical skills will only increase in the rapidly changing world we are living in. Organizations are in the best position to thrive when they understand, build out, and leverage the promise of skills-based reward. This article lays out the value proposition and framework for skills-based reward, the challenges inherent in this area and areas to focus on for successful implementation. Skills-based reward applications cover the following: (1) Hiring talent based on skills. (2) Use of job architecture and job leveling processes that utilize skills. (3) Use of career architecture processes that leverage skills. (4) Performance management processes that utilize skills. (5) Base salary increase and pay promotion systems based on skills.
ISSN:0886-3687
1552-3837
DOI:10.1177/08863687251337554