Although skill-based pay is an increasingly popular pay choice among employers, it is a relatively new pay program with little exposure among white-collar jobs and service organizations. In a pilot study it was found that understanding of skill-based pay systems was the lowest of the pay policies examined in the present study. Furthermore, it is not likely that job seekers would have worked under a skill-based pay system in the past, although they probably have had considerable experience with job-based pay. Skill-based pay, then, is likely to represent a more uncertain situation to most job seekers. Ambiguity, like risk, is generally avoided because it adds to the total uncertainty of the situation. Also, as described above, skill-based pay plans demand greater employee commitment and energy. Employees who are successful in the position into which they were hired may not receive additional rewards because they are expected to learn new skills. The conditions of a less certain but more demanding environment are expected to be undesirable to most job seekers (Cable,
Although skill-based pay is an increasingly popular pay choice among employers, it is a relatively new pay program with little exposure among white-collar jobs and service organizations. In a pilot study it was found that understanding of skill-based pay systems was the lowest of the pay policies examined in the present study. Furthermore, it is not likely that job seekers would have worked under a skill-based pay system in the past, although they probably have had considerable experience with job-based pay. Skill-based pay, then, is likely to represent a more uncertain situation to most job seekers. Ambiguity, like risk, is generally avoided because it adds to the total uncertainty of the situation. Also, as described above, skill-based pay plans demand greater employee commitment and energy. Employees who are successful in the position into which they were hired may not receive additional rewards because they are expected to learn new skills. The conditions of a less certain but more demanding environment are expected to be undesirable to most job seekers (Cable,