For the skill-based compensation structures, payments are tied to individual skills and compensation rates essentially indicate the value allocated to the employees’ skills rather than their job assignments. Compensate employees for the skills they bring to the job. These structures are associated with the opportunities for developing more versatile employees. The payment systems underline the compensation of employees based on a range of knowledge, acquired business-related skills, and the extent of such knowledge or skills. Employees are expected to learn several skills over a particular period, although the required skill levels and time differ from one organization to another. Further, employees are entitled to pay rise after learning a new skill and demonstrating some progress in the skill development. The skill-based payment system is considered to be different from job-based system because it fundamentally emphasizes on the individual/employee as opposed to the job (Jackson, Schuler, & Werner, 2011) Skill-based pay exhibits a different approach to traditional payment systems with the variation in payment rates for skilled, semi-skilled and unskilled workers in the structure. It is apparent that skill-based pay mainly focuses on the individual rather than the assigned job. The pay structure rewards workers for what they are but not the value of their job. As such, job worth or value determines the basic pay usually indicates the rate for minimum skills with skills acquisition resulting in payment progression. In contrast to traditional job-based pay structures, skill-based structures reward employees in accordance to their level of skill as well as knowledge and for acquiring new skills (Mitra, Gupta, & Shaw, 2011). In the private sector, particularly in the manufacturing environment, skill-based pay is significant because skills reflected in the compensation rates can be tied to specific processes and technological requirements in various manufacturing plants. The pharmaceutical industry is an example of one of the sectors in which a company may effectively adopt the skill-based compensation because employees can be trained to perform different processing tasks (Rabin, 2003). Traditional job-based pay systems pay each employee to carry out a particular job all the time. On the other hand, skill-based compensation system seeks to have all employees acquire skills on all jobs to help them move from one job to another as required. Employees are eligible for payment rise for learning as well as indicating proficiency in a new skill, even though they don’t use that skill on the job. Using skill-based payment systems in organizations enhances the ability of the human resources to uphold the organizational goals. The motivational factor involved propels the organization to actualize its mission. Many companies such as some of the Fortune 1,000 companies have implemented skill-based pay for all or some of their workers. Furthermore, they have reported advances in workforce productivity and flexibility, although these benefits are yet to be considered wholly independent outcomes (Byers & Rue, 2008). Authenticity of Author’s claim According to Law