- It's critical that HR be able to accurately price workers' skills, PayScale said in a Nov. 12 press release.
- That ability is central to the hiring process, which demands that HR professionals take both individuals' skills and geography into account when setting pay, the organization said; "it’s not enough to simply pay according to a location because pay can vary by specific jobs or industries." To that end, the company said, it will now offer a tool that aims to help employers put a price on skills by using big data and artificial intelligence.
- An understanding of the value of skills can help others, too, Heather Taylor, PayScale’s head of data products, said in the statement: When managers understand the value of skills, they can be more transparent when talking with employees about professional growth and opportunities.
As employers move to formalize pay bands for roles and skills to ward off discrimination claims, pay transparency has risen in popularity.
According to experts, this can mean an employer encouraging workers to discuss pay information (which is permitted by the National Labor Relations Act anyway) or an employer making public its pay bands.
Some of this has been driven by outside sources. To take the guesswork out of the equation for job seekers, for example, job boards are increasingly rolling out tools like LinkedIn's Salary Insights, which appear on job listings with an estimate of what a position is likely to pay.
But as Taylor noted, pay transparency also promises to ease some difficult discussions for managers around pay and promotion. A 2017 PayScale study revealed that employees' feelings about their organization's approach to pay fairness and transparency had a higher impact on job satisfaction than their actual pay. When managers are equipped with a deep understanding of how pay is set, they can communicate that to workers, boosting employee satisfaction and decreasing turnover.