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  6. Basic Salary Determination Concept: What is Skill-based Pay?

Basic Salary Determination Concept: What is Skill-based Pay?

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last updated:Oct 30, 2024

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In addition to contributing to long-term talent acquisition, there is an advantage in being able to adjust the offer amount during mid-career recruitment.

The functional salary is fundamentally a concept associated with the functional grading system, similar to age-based and length-of-service salaries within the grading system. However, instead of being based solely on age, it determines the base salary based on functional abilities, meaning that as job performance capabilities improve, the base salary increases. The functional salary needs to evaluate the individual's capabilities and reflect them in the base salary. Generally, a salary range is set for each grade, and the base salary is increased by the predetermined salary increment based on the level of evaluation. ▼ If you want to learn more about the concept of determining base salary ▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!

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Basic Salary Determination Concept: What is Skill-based Pay?

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[Complete Edition] HRBrain's Manual for Designing Personnel Evaluation Systems

[Complete Edition] HRBrain's Manual for Designing Personnel Evaluation Systems

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Our "HRBrain" series, which includes "HRBrain Talent Management," consists of seven services: organizational diagnosis surveys, pulse surveys, personnel evaluations, 360-degree evaluations, labor management, and an internal chatbot. This cloud service enables a one-stop solution for streamlining HR operations and centralized management and utilization of human resource data. In addition to further promoting digital transformation (DX) in the HR field, we are expanding our services to contribute to human capital management and ESG management. *As of November 8, 2022.

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