What are the advantages and disadvantages of compensation approaches such as skill-based pay and competency-based pay?

Directly addresses all parts of the discussion requirement. Demonstrates an exceptional understanding of the course content by providing evidence-based responses that reflect the use of content material from the unit reading. Word count: Min. 300 words

Include information that directly relates to the course content and moves the group discussion forward in an effective manner.

Includes more than one citation from either the material assigned or outside material identified by the student. Properly cites reference materials used using the APA format.

Question

What are the advantages and disadvantages of compensation approaches such as skill-based pay and competency-based pay? How can the disadvantages be overcome? Some companies have moved away from commission-based incentive plans to team-oriented incentive plans. How do you think this change will affect these companies?