Success and survival of skill-based pay plans

Jason DeFrance Shaw, Nina Gupta, Atul Mitra, Gerald E. Ledford

Research output: Journal article publicationJournal articleAcademic researchpeer-review

33 Citations (Scopus)


Factors related to the success and survival of skill-based pay (SBP) plans are addressed in a longitudinal study of 97 facilities. Results indicate that certain design features and support variables relate to increased workforce flexibility and to SBP survival, and supervisor support also relates strongly to SBP survival. The results also show that SBP plans are more successful and sustainable in manufacturing facilities than in service facilities, and SBP survival is less likely in facilities pursuing a technical innovation strategy. Implications of the research for theory and practice regarding SBP plans, compensation systems, and human resources management innovations are addressed.
Original languageEnglish
Pages (from-to)28-49
Number of pages22
JournalJournal of Management
Issue number1
Publication statusPublished - 1 Feb 2005
Externally publishedYes


  • Innovation
  • Job design
  • Skill-based pay
  • Survival

ASJC Scopus subject areas

  • Finance
  • Strategy and Management


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