What is a disadvantage of skill-based pay systems?

A) It makes organizations inflexible.
B) It reduces employee empowerment.
C) It may result in paying employees for skills they don't use.
D) It reduces opportunities for promoting employees.
E) It limits the number of pay levels by delayering.

Skill-based Pay Systems

Compensation structures that determine employee pay based on their skills, knowledge, and abilities rather than their job title or position.

Employee Empowerment

The process of giving employees the authority, resources, and motivation to help them contribute to their fullest potential.

Delayering

The process of reducing the number of levels in an organization's hierarchy, aiming to simplify structures and improve communication and decision-making.