Currently, the most commonly used model of paying an employee at companies in the U.S. is referred to as job-based pay. Through jobbased pay, an employee is paid for the job he or she performs. However, there are other methods of paying an employee. A very successful model that is becoming better known is referred to as skillbased pay (SBP). Through skillbased pay, an employee is paid based on a set of skills or a range of jobs he or she is capable of performing. This paper explores the benefits of paying an employee based on the model of skill-based pay. First, it will present the pay design options that are available when using the model of SBP. Second, it will show what the long-term success and survival of skill-based pay might look like. Third, it will provide you an idea of the potential return on investment (ROI) for companies that use the SBP format.