Attract and retain top talent by advancing pay-for-skills
Agile workforce management requires identifying, keeping and moving skilled talent. Advancing pay-for-skills practices can secure top talent at competitive rates and help future-proof businesses.
Challenges
- It’s difficult to attract and retain the skills required to transform for the future.
- Our traditional compensation methods are not aligned with new workforce requirements for agility and flexibility.
- The lack of transparency in our compensation programs is an obstacle to building employee trust with the organization.
- We don’t know which skills are most valuable, and we’re concerned we’re over- or underpaying for the wrong skills.
Rethinking compensation plans is a top-five agenda item for HR, with 36% of respondents citing it as a top priority.
Mercer Skills Edge solution can help you advance pay for skills
Pay-for-skills practices can lead to increased attraction and retention of critical skills. In addition, they can strengthen and reinforce other people initiatives, such as workforce planning, performance management and career development. Mercer products that can support pay-for-skills initiatives include:
Skills Library
Lay the groundwork for skills-based decision-making.
Skills Map
Use review and approval workflows to map skills and proficiencies to your jobs.
Skills Pricer
Determine which skills are most valuable to your organization.
Skills pay planner
Reinvent your rewards with pay for skills.
Watch our interviews on approaches to skills-based pay
In this interview series, several Mercer consultants talk with IBM executives about the journey IBM has taken to plan and adopt a skills-based pay approach.
What set IBM on the path to include skills in compensation decisions?
Who were the critical stakeholders and how did you build your business case?
How did you manage the transition and change across the organization?
What were the business impacts and how did it affect recruiting and retention practices?
How did you link your performance review program to the pay-for-skills program?
Did the pay-for-skills program bring a pay change across all job families, including for soft skills?
How did employees react to the transition?
How do you see pay-for-skills developing in the future?
Only 12% of respondents indicate that they formally monitor market demand for skills, but this figure is rapidly increasing with access to new data sources and technology.
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