Colton's Salary Is $40,000 Per Year

question 49

Multiple Choice

Colton's salary is $40,000 per year.This part of his compensation is considered ______.

• A) base pay
• B) wage and salary add-on
• C) incentive pay
• D) benefits

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Definitions:

Skill-Based Pay

A compensation system where employees are paid based on their skills, expertise, and the complexity of the tasks they can perform, rather than just their job title or position.

Skill Certification

A formal process through which an individual's expertise in specific areas is recognized, typically through assessments or coursework.

Competency-Based Pay

Salary determination method where compensation is based on an employee's skill, knowledge, and performance level rather than job title or position.

Identifying Competencies

The process of defining the abilities, skills, knowledge, and behaviors necessary for effective performance in a specific job role.