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A Dictionary of Human Resource Management

Edmund Heery,

Mike Noon


is a payment system in which pay increases are linked to the successful completion of training. Pay-for-knowledge can form part of a set of high performance work practices because it promotes skill formation and employee development. It can also support a system of teamworking in which employees are required to work flexibly, moving across traditional task and occupational boundaries within the team. [See skill-based pay.]