Is your traditional job-based pay (JBP) system working for you? If not, consider an approach to pay that builds teamwork and strengthens organizational effectiveness by enhancing overall skill levels across units in which it is implemented. Skill-based pay (SBP) is not a new or radical concept, having been implemented in the private sector as early as the late 1960s. Since then, while its use has grown in private sector businesses, SBP has not been as broadly implemented in the public sector. And, while SBP is not a one-size-fits-all solution, many local governments are increasingly looking at it as an important part of their overall compensation and management strategy.
This article, originally published in the Illinois City/County Management Association (ILCMA) September 2021 newsletter, highlights the advantages of SBP for the public sector compared to pay supplements and career ladder programs.