What strategy is advisable when implementing a new capability-based pay system?

Conducting a pilot program before fully implementing a new capability-based pay system is advisable because it allows organizations to test the system in a controlled environment, gather feedback, and identify any issues that may arise within a smaller, manageable group. This approach helps to ensure that the system operates as intended and meets the organization's goals while also taking into account employee concerns and experiences.

By running a pilot, the organization can refine the program based on real-time data and reactions, which can increase the likelihood of success when the system is rolled out organization-wide. This strategy also facilitates buy-in from employees, as their input can lead to improvements and a sense of ownership over the new system.

In contrast, implementing the system organization-wide without prior testing can lead to unforeseen challenges, resistance, and potential disruptions to pay equity and morale. Timing the implementation to coincide with employee reviews may not provide the necessary insights to refine the system. Simply adjusting salary amounts without a comprehensive review of the entire capability-based pay structure may overlook critical components that ensure the system's effectiveness and alignment with organizational goals.