Ep - 3 | Compensation & Coffee | How to Incorporate Skill-based Pay in Your Organization

Shift From Job-Based to Skill-Based Thinking

Skill-based pay requires breaking roles into tasks, identifying required skills, and rewarding proficiency growth rather than job titles. This shift demands redesigning talent acquisition, learning, and rewards systems to operate around skills instead of fixed roles.

AI Changes Work Nature, Not Necessarily Jobs

AI automates transactional work and alters skill requirements but does not eliminate most roles entirely. Organizations must focus on reskilling employees for emerging competencies while maintaining a human-centric approach during technological transformation.

Human-Centric Design Drives Successful Transformation

Technology and AI initiatives succeed only when employee experience is prioritized. Adoption depends on usability, communication, and trust. HR leaders must balance innovation with empathy to ensure transformation enhances—not disrupts—the workforce.