The phrase represents the idea of a wage or wage that’s “decided on expertise,” or extra formally, “depending on expertise.” It signifies that the compensation supplied for a place just isn’t fastened however moderately adjusts primarily based on the candidate’s {qualifications}, abilities, and the variety of years they’ve labored in a related discipline. As an example, a job commercial would possibly state the position gives a wage vary, and that the ultimate quantity inside that vary supplied to a candidate will hinge on their demonstrated experience.
The sort of compensation mannequin permits employers to draw a wider pool of expertise by interesting to each entry-level and seasoned professionals. It acknowledges that people with extra in depth expertise carry larger worth to a corporation and compensates them accordingly. The apply also can inspire staff to repeatedly develop their abilities and acquire extra expertise, doubtlessly resulting in greater earnings over time. Traditionally, this technique of wage willpower turned extra widespread as companies sought to distinguish compensation primarily based on particular person contributions and experience ranges moderately than relying solely on standardized pay scales.
