Should pay scale reflect performance level or should it be solely based on qualifications?
This was selected as Best Answer Bobby, When you say pay scale, are you referring to the salary ranges or are you referring to individual salary. In general, pay ranges are set using market surveys, which in turn reflect the individuals performing that benchmarked role. Since most companies pay for performance, actual performance will have a more heavy weighting on the survey data. Entry level positions and in some cases adjustments for advanced degrees rely on qualifications (academic) without necessarily having performance experience. As Bruce pointed out, qualifications can be broad based or specific. Good business judgment, financial understanding, customer service are examples of qualifications that can be applied outside one’s current domain. However, skills and attributes that are transferable do not necessarily mean that the person will be successful. Look at the number of very successful high level execs who are wooed to new industries to work their magic and then fail due to
