Competency Based Pay

Learn about Competency Based Pay and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
Schedule a Demo Learn more about workstream

What is competency-based pay? 

Competency-based pay is a system of paying employees according to their mastery of skill, knowledge, and experience as opposed to their job title, position, or tenure in the company. Via this system of pay, employees are encouraged to reach their desired pay rate by improving and developing their skill set. 

Is there another name for competency-based pay? 

It may also be known as skill-based pay. 

How does a competency-based pay plan differ from a traditional pay plan? 

In a traditional pay plan, the focus is on paying for the job based on a grade level and experience that a specific job requires. In this traditional plan, the pay typically increases as the employee’s tenure with the company increases. Meaning, the more tenured the employee is, the more they can move up the organization, the more they are paid. 

On the other hand, the competency-based plan focuses on paying for the person’s skill set. In a competency-based pay plan, the pay increases on the level of skill mastery and not necessarily on the employee’s tenure with the company. 

What are the benefits of having a competency-based pay plan?

Here are the following perceived benefits of a competency-based pay plan: 

What are the possible drawbacks of having a competency-based pay plan? 

Here are the following potential drawbacks of a competency-based pay plan: 

A competency-based plan has its share of advantages and disadvantages. Ultimately, it is up to the business to decide if it is a suitable plan for them or otherwise.

Try out Workstream to hire employees for
your business

A revolutionary hiring process for Hourly positions

A revolutionary hiring process for Hourly positions Hiring hourly staff in San Francisco can be a tough job. Workstream can help accelerate the process by letting you post on job boards like Indeed within seconds.

1-Click Job Posting

No more tedious copy and pasting. We integrate with all the top job boards. All applicants funnel into one intuitive dashboard.

Text-to-Apply Posters

Print out your unique QR code and text message number. Applicants scan/text to see all open positions and apply right away.

Automated & 2-Way SMS

Engage with applicants via text. Include links to screening questions, forms, and more. Use 2-way text to answer questions.

Endless Integrations

Connect Workstream to your calendar so applicants can schedule interviews. Streamline onboarding with background check & HR integrations.

Candidate Tracking & Scoring

View all your applicants and employees in one place. Make notes on their progress. Access their docs anytime from anywhere.

Customizable Templates

We provide templates for everything from job postings to offer letters. Send links to docs and tax forms via text message so new hires sign digital copies.

What other owners
think about hiring through Workstream

"User friendly and time saving vs other systems, major feature is the SMS instant communication with applicant."

Great Service Restaurants dba Jamba

Currently hiring on Workstream for:

Team Member

Assistant Manager

Shift Manager

"One of the best platforms we have ever used. Highly effective."

Alegre Home Care

Currently hiring on Workstream for:

Home Health Aide


RN Home Health

"Workstream is quick and efficient. I love that an applicant can apply and can have a phone interview within 24 hours, without all the back and forth."

Sylvan Learning Center | Piedmont

Currently hiring on Workstream for:

Middle School Teacher - After School

Elementary Teacher Needed After School

Math Tutor - After School