Problems with skill-based pay

One of the problems with skill-based pay is that the stamp that you received the skills training doesn't guarantee that you have actually acquired the skills. For example, when a teacher gets a masters degree, does that guarantee he or she will do a better job at teaching in the classroom? An article that makes this point nicely is Malcolm Gladwell's article in the New Yorker:

(There's also a good analysis of why you can't predict who will be a great NFL quarterback based on how they do as a college quarterback. Overall, great read. Enjoy.)

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How do we hire when we can’t tell who’s right for the job?

by Malcolm Gladwell