What type of pay system is recommended for the research and development unit to attract qualified employees?

A capability-based pay system is particularly well-suited for attracting qualified employees in a research and development unit because it emphasizes the value of skills, knowledge, and competencies that contribute to innovation and creativity. This type of pay system recognizes that the talent required for R&D often goes beyond the specifics of job roles and includes the unique capabilities employees bring to the organization.

In industries reliant on research and development, employees may possess a variety of specialized skills that are crucial for driving innovation and project success. By implementing a capability-based pay system, the organization signals its commitment to investing in and rewarding the varied skills of its workforce, which can be an attractive prospect for potential hires. This approach aligns compensation with the actual capabilities that enhance organizational performance, fostering a competitive advantage in attracting top talent who are looking for recognition of their expertise.

Furthermore, a capability-based pay system allows for flexibility in compensation, accommodating diverse roles and responsibilities within the R&D unit, thereby making it appealing to candidates who are highly specialized or have interdisciplinary skills.