New analytics platform looks at impact of digital skills on pay

Dive Brief:

A new analytics platform launched by Willis Towers Watson allows companies to see the impact of digital skills on pay for employees with those skills, according to a statement. The platform, called SkillsVue, uses machine-learning algorithms to assess skills and compensation data to calculate the value of individual skills.
The company cited a 2018 survey in which it found that, globally, nine out of 10 organizations struggle with attracting and retaining digital talent. Willis Towers Watson said organizations will need to find "a different approach" for compensating and rewarding talent that has grown alongside digital technologies. SkillsVue will roll out in 2019 to clients in a handful of countries including the U.S.
"As skills become the make-or-break factor in sourcing digital talent, the competitive pay data delivered through traditional means need to be revised to include a hassle-free, skill-aware benchmarking experience that can be repeated year after year," Sambhav Rakyan, global business leader, data services and compensation software at Willis Towers Watson, said in the statement.

Dive Insight:

Data analytics is playing a bigger role in the day-to-day business of HR, and pay is one area that could benefit from emerging science around data. A first step in pushing the workplace toward skill-based pay might be determining what skills workers already possess. Experts who previously spoke to HR Dive pointed to skills mapping programs that take into account workers' interests and career trajectories to determine how to administer training to them.

Most workers take pride in their skill set instead of their paycheck, according to a recent report by capital firm RocketFund. But that doesn't mean workers or potential candidates are necessarily satisfied with their pay, given the sluggish wage growth currently experienced by many U.S. workers. If employers are having difficulty finding workers with particular skills, one reason may be that they aren't offering a starting salary or benefits packages that match up with their competition.

"Today digital professionals who have skills in blockchain, artificial intelligence and mobile are receiving the highest salary premiums, with a median of around 15% of base salary. Digital talent, especially those with specialized skills, can have a significant impact on the organization's transformation journey. Having a differentiated reward offering will send a signal to digital talent that the employer recognizes their potential and does not subscribe to a one-size-fits-all philosophy," said Marc McBrearty, North America practice leader, rewards data and software, Willis Towers Watson.

As HR departments turn to data in areas like recruiting and engagement, leaders in the industry will likely need to improve their own understanding of data science. That may factor into decisions by industry trade groups and business schools to introduce data analytics curricula.