A person’s motivation to increase their knowledge in order to increase their salary or receive other benefits is known as knowledge-based pay. An employee will be able to take on increasingly challenging and lucrative tasks on behalf of the company as their knowledge base expands.
Employees will be able to improve their job abilities once a knowledge-based remuneration system is in place. An individual frequently receives a particular wage increase as they go to the next level of education. The process could have multiple steps or be one-tiered.
Knowledge-based pay plans can encourage employees to pursue lifelong learning, which helps keep a company competitive. The superior craftsmanship will result in increased inventiveness, longer professional worker tenure, and higher sales.
