Section Four
For example, a plant technician at the top of the
skill range may work on electrical assignments
when such work needs to be done or may be
assigned to quality assurance or to operate a
specific machine if no electrical problems require
attention.^20Because of such characteristics, companies dealing with
stiff foreign competition have a higher propensity to implement
skill-based pay approaches. Likewise, in companies in which
promotional opportunities have been reduced because of the
delayering of organizational structures, there also are higher
propensities to implement skill-based pay.^21 The extent of skill-
based pay usage is revealed by a survey, which found that 51
percent of responding companies had implemented the
approach. However, companies generally apply this pay
approach to fewer than 20 percent of their employees.^22
Because of the advantages of skill-based pay, numerous
companies have adopted this approach. For example, General
Mills, Northern Telecom, and Honeywell have substantial
experience with skill-based pay. Skill-based pay approaches
have been frequently implemented in high-involvement
manufacturing settings, and they also are being implemented in
service environments. Although there are variations in how
skill-based pay is implemented, employees typically start out at