Fairness in Skill-Based Pay


This measure, developed by Lee, Law, and Bobko (1998), assesses perceived fairness in a skill-based pay program. Skill-based pay systems pay employees for the range, depth, and types of skills applied on jobs. Employee perceptions of the skill-based pay program are likely to be influenced by their perceptions that certification procedures are objective and consis­tent across people, times, and skills; include opportunities for employees to ask questions about the decisions made; and incorporate the use of accurate information.


Coefficient alpha for the fairness measure was .80 (Lee et al., 1998).


Confirmatory factor analysis showed that measures of fairness, three skill­ based pay system characteristics (training, understanding, and advance­ ment), and perceived benefits of skill-based pay and pay satisfaction were empirically distinct. Perceived fairness of skill-based pay correlated positively with the amount of pay at risk, pay satisfaction, perceived benefits of skill-based pay, training/job rotation provided, understanding of the skill­ based pay plan, and understanding of how to advance in the plan (Lee et al., 1998).


Lee, C., Law, K. S., & Bobko, P. (1998). The importance of justice perceptions on pays effectiveness: A two-year study of a skill-based pay plan. Jour­nal of Management, 25(6), 851-873. Items were taken from the appendix, 871. © 1998, reprinted with permission of Elsevier Science.


Responses are obtained using a 7-point Likert-type scale where 1 = strongly disagree, 2 = disagree, 3 = slightly disagree, 4 = neither agree nor disagree, 5 = slightly agree, 6 = agree, and 7 = strongly agree.

  1. Supervisors do a good job of certifying employees for skill-based pay raises
  2. The skill-based pay certifications are a fair test of employee ability to perform a task
  3. If an employee really knows how to perform the tasks that make up a skill level, the employee will be able to pass the certification tests for that skill level
  4. The skill-based pay plan is fair to most employees

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Mohammed Looti, PSYCHOLOGICAL SCALES (2023) Fairness in Skill-Based Pay. Retrieved from https://scales.arabpsychology.com/s/fairness-in-skill-based-pay/. DOI: 10.13140/RG.2.2.31575.96163