What is one consequence of implementing policies that slow the rate of topping out?

Implementing policies that slow the rate of topping out—where employees reach the maximum pay level for their position—leads to a gradual increase in employee skills. When pay progression is slower, employees may have more opportunities to learn and develop their skills as they work towards increments in compensation. This can encourage employees to take on new responsibilities or seek professional development, thus enhancing their competencies over time.

Furthermore, this approach can foster a culture of continuous improvement and skill-building within the organization. Employees are incentivized to engage in training programs or further education to position themselves for potential salary increases or promotions, ultimately benefiting both the employees and the organization by creating a more skilled workforce.