The three main types of pay are skill-, knowledge-, and competency-based. Different jobs which require different skills may need different pay structures. There may be times when all three pay structures would be effective for the same position. That is when it is up to the Human Resource department to decide which will most effectively motivate the employees. It is important to understand the three types of pay that can be implemented to reward performance. Prepare a paper that explains the strategic differences between pay for performance and pay for knowledge systems. Include an analysis of how various pay plans used for teams align with pay for performance and pay for knowledge systems.
