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Article
If you pay for skills, will they learn? Skill change and maintenance under a skill-based pay system.
Journal of Management (2008)
  • Erich C. Dierdorff, DePaul University
  • Eric A. Surface
Abstract
Although the use of skill-based pay has increased in popularity, empirical investigations of the effectiveness of this compensation strategy have been scarce. The fundamental premise of skill-based pay is that contingent monetary reward will promote individual learning. The authors empirically examine this essential principle with data spanning 5 years, using latent growth analysis. Results demonstrate that skill-based pay is related to individual skill change and maintenance. Whether or not individuals earn skill-based pay on their initial attempt is associated with subsequent rates of learning. In addition, the frequency with which skill-based pay is received and the total amount earned are both associated with skill development and maintenance.
Publication Date
2008
Citation Information
Erich C. Dierdorff and Eric A. Surface. "If you pay for skills, will they learn? Skill change and maintenance under a skill-based pay system." Journal of Management Vol. 34 (2008)
Available at: http://works.bepress.com/erich_dierdorff/9/