The updated platform puts multiple data sources at the fingertips of employers following the merger of Payscale and Payfactors
The new capabilities give employers a competitive edge as pay transparency laws are on the rise across the country
Payscale Inc., the leading provider of compensation data, software and services, announced it is further empowering employers to pay employees fairly with the launch of its new Payfactors platform. The evolved technology comes just one year after Payfactors and Payscale merged their offerings and equips employers with three unique native data sets which can be easily cross-referenced with third-party published data surveys.
Across the country, state legislation to publish salary bands is on the rise, forcing organizations in states including New York and Colorado to address internal transparency and pay compression issues head on. Payscale’s Compensation Best Practices report also shows a 10% increase in the number of organizations focused on developing a pay strategy between 2021 and 2022, with 76% of organizations experiencing labor shortages in 2021. The Payfactors platform provides organizations with customizable market perspectives to fully understand pay trends and to build pay strategies and structures that solve issues like pay compression — helping to retain talent and stay adaptive in labor market.
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“With a new generation of workers demanding we change the way pay is discussed, the Payfactors platform is an invaluable resource for organizations big and small,” said Ruth Thomas, Chief Product Evangelist at Payscale. “It gives employers the power to make more transparent and equitable decisions about pay — effectively working to close pay gaps and retain their talent.”
“Our biggest challenge as compensation professionals is moving at the speed of business. When it comes to people’s pay, you have to get it right. And to stay competitive — particularly today — you have to get it in place right away. Payscale gives us current, real-time market data and a streamlined way to access the information we need for analysis and validation,” said Kari Lavin, Compensation Manager, Integer Holdings.
The Payfactors platform makes three unique data sets accessible to customers, including the world’s largest salary database of employee reported data—boasting over 65 million profiles collected directly from employees working in the market and validated through AI technology. The Employee Reported dataset provides a near real-time view of the labor market and equips organizations with the tools to better understand how skills, location or other compensable factors impact pay. It adds to the recently expanded HR Market Analysis and Peer data that was previously available and recognized as Fast Company’s 2021 World Changing Ideas Award winner due to its inherent ability to address pay transparency. These sources provide employers with both a supply and demand side perspective which is unique in the market and critical for better decision making.
“It’s validating but not surprising that Peer has experienced nearly 50% growth in the last year alone, recently reaching 7 million incumbents. Employers are hungry for state-of-the-art compensation data that is continuously updated, customizable and transparent. They need data their leadership team can be confident in, they need market trends, and to be empowered to be proactive,” said Russ Wakelin, Chief Product Officer at Payscale. “The labor market is fiercer than ever, and employers everywhere are struggling to retain top talent. We built the new platform with the complete compensation life cycle in mind knowing that an employer’s strategy is about more than just what they are going to pay against the market – it’s the ability to fine tune all the practices that inform and are informed by compensation.”
Payscale’s user-centric design ensures compensation management is easier than ever before, enabling employers to benchmark pay and utilize technology to ensure equitable and transparent pay practices — redefining the compensation data experience.