What is the goal of implementing a capability-based pay system in the organization?

Implementing a capability-based pay system primarily serves the goal of incentivizing specific skill sets. This type of pay structure rewards employees based on their unique skills, competencies, and contributions to the organization. Unlike traditional pay systems that focus on general tasks or job titles, a capability-based approach encourages employees to develop and enhance specific abilities that are highly valued by the organization.

By linking compensation to the actual skills that employees possess and utilize, organizations can better align their workforce's capabilities with strategic goals. This not only motivates employees to enhance their skill sets but also ensures that the organization can respond effectively to changing market demands and operational needs.

This approach contrasts with simply paying more for general tasks, unifying pay grading across the board, or merely controlling labor costs, as those options do not specifically target the development and leverage of individual capabilities that a capability-based pay system is designed to encourage.