Analysis

The Fairness in Skill-Based Pay Scale (FISBP) is a psychometric tool designed to measure employees’ perceptions of fairness, equity, and transparency in skill-based pay systems. It evaluates how workers perceive the objectivity of compensation structures that reward skill development and expertise.

Objective

The primary goal of FISBP is to assess employees’ views on the fairness and clarity of skill-based pay systems. Insights from this evaluation can help: HR professionals and managers refine compensation policies, Enhance employee satisfaction and engagement, Improve transparency and trust in pay structures.

Calibration

The scale is typically measured using a 5-point or 7-point Likert rating system (1 = Strongly Disagree, 5 or 7 = Strongly Agree). Higher scores indicate greater perceived fairness and transparency in the skill-based pay system.

References

Milkovich, G. T., & Newman, J. M. (2008). Compensation. McGraw-Hill Education.
Adams, J. S. (1965). Inequity in Social Exchange. In L. Berkowitz (Ed.), Advances in Experimental Social Psychology (Vol. 2, pp. 267-299). Academic Press.
Lawler, E. E. (1990). Strategic Pay: Aligning Organizational Strategies and Pay Systems. Jossey-Bass.