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.


  • 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.

Best Advance in Practical AI

Mercer's groundbreaking Skills Edge Solution for Talent Management has secured the 2024 HR Tech Award.

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.

Learn more about Skills Library


Skills Map

Use review and approval workflows to map skills and proficiencies to your jobs.

Learn more about Skills Map

Skills Pricer

Determine which skills are most valuable to your organization.

Learn more about Skills Pricer

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.

Watch the replay

Leading with a skills-powered strategy - One iteration at a time

Following the successful webinar, we are excited to share the accompanying workbook and recording. This engaging session delves into the impact of incremental progress, starting from the ideation stage and covering topics such as gaining buy-in, prioritizing investments and building a skills foundation.

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