Paying the person
A fundamental choice in deciding how to structure a pay system is between paying the job, that is, determining a person's pay by looking at the job they're doing, versus paying them for the skills that they have. Now, historically, certainly, we've paid people according to their job as the dominant mode. The alternative, of paying people according to their skill set, makes enormous amount of sense in situations where skills are a key determinant of how effective the individual is gonna be and can be in the future.
The issue immediately arises, of course, if you're gonna pay for skills as to what skills are you willing to pay for. Not any skills that the person has, or all the skills a person has, or any that they might decide to pay. But, if you want people to develop, and grow, and add more value, it may very well make sense to say, "If you add this skill set to your package, "we'll pay you more. "If you develop more on your software engineering skills," or whatever it might be, "We will up your pay. "We won't necessarily change your job.Source: https://www.linkedin.com/learning/human-resources-pay-strategy/paying-the-person