This study is intended to analyze employee acceptance of an alternative reward system that reinforces continuous learning, teamwork, major expansion of individual capabilities, business knowledge application, and business unit (team) performance. This system is in contrast with traditional pay systems that reward seniority and individual performance determined by the subjective ratings of a direct supervisor, with pay increases based mainly on current job grade (and the availability of higher job grades within the company) and comparison with market value of the job. Individuals from three areas of a major electronics manufacturing company in the southwestern part of the United States served as subjects.