Book excerpt: The Skill-Based Pay Design Manual is an invaluable resource for designing and implementing a system of compensation that ties base pay to employee knowledge and skill rather than to a position or job content. Internationally recognized authors and consultants Joseph and Jimmie Boyett bring over twenty years of experience in helping companies implement skill-based pay and employee performance incentive programs. The Skill-Based Pay Design Manual is a complete step-by-step guide for designing and implementing skill-based pay. In addition to a comprehensive overview of skill-based pay and its impact on company operating and financial performance, the Boyetts provide the following: The advantages and disadvantages of skill-based pay; A comparison of skill-based pay vs. job-based pay; How to determine if skill-based pay is right for your organization; 12 keys to success; 14 case studies of companies using skill-based pay. Step-by-step instruction in how to... Design the skill-based pay plan; Identify skill sets; Link skills to pay progression; Implement and evaluate the skill- based pay program; and Gain employee and union support for skill-based pay. The Skill-Based Pay Design Manual is an insightful, informative and essential resource based upon solid research and the personal experiences of the authors.