Section Fourimplemented frequently in participative environments, and as
noted earlier, in conjunction with semiautonomous work groups
or self-managed teams. With teams, participative management,
and high-involvement environments, employees can make
meaningful contributions that result from their broader
understanding of the production environment.^26
Although there are numerous benefits of skill-based pay,
there are also problems, as with any other compensation
approach. One problem involves compensating employees who
have topped out on the skill progression. For these employees,
some observers have recommended incentives in the form of
gain sharing, in which benefits from cost reductions or
increased productivity are passed on to employees. Another
problem is that training is frequently insufficient to support
skillbased pay approaches. Some managers have even been
reluctant to release sufficient funds from their training budgets
to support skill-based pay.^27