What performance-based pay system would best support an organization's goal of increasing employee development?

The skill-based pay system is particularly effective in supporting an organization's goal of increasing employee development because it rewards employees for acquiring new skills and competencies rather than solely for their current job performance or tenure. This approach encourages employees to engage in continuous learning and skill enhancement, which can directly contribute to their professional growth and the overall capabilities of the organization.

When employees are motivated to develop new skills, they not only improve their own career prospects but also become more valuable assets to the organization, potentially enhancing productivity and innovation. By linking compensation to skill acquisition, organizations foster a culture of development and lifelong learning, aligning employee growth with business objectives.

In contrast, performance-based bonuses typically focus on short-term results rather than long-term development. Job seniority pay rewards longevity rather than skill improvement, and commission pay often emphasizes sales performance over skill growth. Thus, aligning pay structures with skill acquisition supports an environment conducive to continuous development.