Refer to Scenario 9.1. Which of the following is NOT a benefit of competency-based pay system?

A) greater productivity
B) decreased compensation costs
C) improved staffing flexibility to meet production or service demands
D) reduced effects of absenteeism and turnover

Compensation Costs

The total of an employer's expenses for employee salaries, wages, benefits, and other forms of compensation.

Competency-Based Pay System

A salary structure that compensates employees based on the specific skills, knowledge, and abilities they bring to their roles, rather than their job title or position.

Absenteeism

The habitual non-presence of an employee at their job, which can be due to various reasons including illness, personal issues, or disengagement with work.