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PayScale’s New Differentials Engine Uses AI and Big Data to Enable Users to More Accurately Price Hot Jobs in Competitive Markets

Seattle, WA – November 12, 2019PayScale, Inc., the world’s leading provider of cloud-based compensation software and data, today announced the introduction of its Differentials Engine — a tool that allows businesses to more effectively compete for talent with the ability to take skill and geographic data into account as they price today’s high-demand jobs in competitive markets.

With technology-driven jobs being the future, understanding the value of skills is becoming more important.  “Companies want to get the most from their recruiting investments and many today are not attracting top talent because they are not paying these in-demand employees based on the skills they deliver,” commented PayScale Head of Data Products, Heather Taylor.

PayScale’s new Differentials Engine also delivers insights into how geographic location impacts compensation. While it’s important to consider the cost of talent in a particular geography when pricing a job, it’s not enough to simply pay according to a location because pay can vary by specific jobs or industries. For example, an employer could be underpaying a set of technology jobs and overpaying financial jobs at their company. Employers want to understand the geography differential by each job family to ensure they can hire and keep the right talent in their specific location

PayScale customers will now be able to layer both skill and geographic differentials on top of their existing compensation data so they can more accurately price their most competitive positions.

The Differentials Engine makes it quick and easy to incorporate skills and geographic data in the PayScale’s MarketPay tool. The Engine automatically matches an employee’s job title to PayScale’s compensation database, making it easy to apply the right differentials to the right jobs. The data in the Differential Engine has been validated by a team of statisticians and is updated regularly, with skills data updated every two weeks and geographic data updated quarterly to ensure clients are always working with the freshest data.

PayScale has more than a decade of experience collecting compensation data and has developed sophisticated machine learning and compensation analytics expertise. As a result, PayScale is uniquely poised to provide managers with the industry’s most accurate skills and geographic data for determining specific employee’s pay.

“PayScale is committed to helping companies provide fair and accurate pay to their most valuable assets, their employees. Understanding how pay is impacted by both geography and skills can help our customers attract and retain the best talent,” continued Taylor. “Understanding the value of skills also empowers managers to provide more transparency in their employees’ career pathing, with the ability to have facts-based conversations around areas of growth and opportunity,” she concluded.

Companies can purchase the PayScale Differentials Engine for MarketPay for Geography, for Skills, or for both. For more information, please visit:

About PayScale
PayScale offers modern compensation software and the most precise, real-time, data-driven insights for employees and employers alike. More than 8,000 customers, from small businesses to Fortune 500 companies, use PayScale to power pay decisions for more than 23 million employees. These companies include Encana, Patagonia, The New York Times, Sunsweet, T-Mobile, United Health Group, Wendy’s and Perry Ellis. For more information, please visit: or follow PayScale on Twitter:

Press Contact:
 Erica Beyer

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