Skill-based Pay as an Organizational Innovation

Abstract

The apparent success of skill-based pay m the private sector has generated attention within the public management community Some public agencies are now experimenting with the concept The experiences ofthose organizations as well as of private organizations that have implemented skill-based pay programs provide sufficient basis to address questions relating to the suitability of skill-based pay for the public sector This review of the literature and of the experiences of three public agencies concludes that an understanding of the implications of publicness for skill-based pay outcomes necessitates the development of a theoretical model which incorporates a range of both environmental and organizational variables

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