In a job-based system, when do pay changes typically occur?

Prepare for the HRM/324T Total Compensation Test with engaging flashcards and multiple-choice questions. Boost your understanding with explanations for each question and get exam-ready!

In a job-based pay system, pay changes are typically linked to changes in an employee's job position. This means that when an employee takes on a new role—whether through a promotion, transfer, or any significant change in job responsibilities—their pay is likely to be adjusted to reflect the new job's requirements, responsibilities, and market value. Pay changes in this context are driven by the need to align compensation with the specific details of the job rather than individual performance or training milestones.

It is essential to note that while performance reviews and company-wide pay adjustments can influence compensation, they are more aligned with merit-based or general pay adjustments, respectively. Job training completion may also lead to increased competencies or skills, but it doesn't directly mandate a pay adjustment unless it is tied to a change in job responsibilities or a new role.

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