1. The document discusses different approaches to determining employee pay, including person-centered pay, skill-based pay, and competency-based pay. 2. Skill-based pay ties pay to the skills, abilities, and knowledge an employee possesses, and allows for flexibility in assigning employees to needed work. Competency-based pay focuses on characteristics like personality, attitudes, knowledge, skills, and behaviors. 3. While skill-based and competency-based pay aim to motivate employees and support organizational goals, they also require fair systems for assessing skills and competencies and determining how additional training impacts pay.