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Only 14% of organizations have implemented skills-based talent strategies such as pay-for-skills or a skills framework



  • Uncertainty about what to pay for critical skills
  • Low transparency and lack of control for employees trying to manage their career progression
  • Difficulty making pay decisions aligned to skills, talent scarcity and performance
  • Inability to respond to the changes in the value of skills
  • 43% of organizations don't have an approach for classifying skills at any level of the company

The approach to compensation is evolving in the workplace:

  • Agile workforce management is increasing the need to identify, keep and move high-demand skilled talent
  • COVID-19 landscape demands efficiency and retention strategies for critical talent
  • Digital and tech skills, and gig workers are becoming more prevalent

To secure top talent without overpaying, companies need a better understanding of demand and competitive rates. A skills-driven approach can help future-proof businesses.


Learn how our pay-for-skills solutions equip your organization with the skills to succeed:

Mercer Skills-Edge Suite of offerings to help you advance pay-for-skills in your organization:

Skills Library


Lay the groundwork for skills-based decision making


Skills Pricer


Determine which skills are most valuable to your organization


Skills Pay Planner


Reinvent your rewards program with pay-for-skills


Skills Library

Lay the groundwork for skills-based decision making


Do you have the skills you need to succeed? Are you looking to understand your skills requirements and current bench strength? Our Skills Library offers a skills taxonomy based on market data, curated by Mercer and mapped to the Mercer Job Library. Create a skills adoption roadmap, align your organization to it, and identify and map the highest-priority skills needed to succeed in the future.


Don’t waste time digging through data or trying to create your own custom taxonomy. Skills Library maps 2,600 unique skills to over 5,300 jobs in our Jobs Library, making it the fastest way for Mercer Job Library customers to incorporate skills into their strategy. Not a Mercer Jobs Library client? No worries, we’ll match your jobs to our Library in no time to get you started quickly.


The skills included in the Skills Library span a variety of traditional categories such as: competencies, qualifications, certifications, hard and soft skills, as well as regionally specific needs. By including all these under the skills umbrella, clients can define roles by the critical needs to succeed in the job.


Skills Pricer

Reward the critical skills that are driving impact in your organization


Skills Pricer is a self-service web application that reports which skills influence the pay of a selected job. Through this skills-based market approach, you can determine which skills are most valuable to your organization in attracting and retaining in-demand talent.


Our interactive platform facilitates the exploration of how critical skills impact pay. Skills Pricer uses machine learning to report pay premiums, market demand and relative importance for the most crucial skills by job.


Mercer’s proprietary algorithm uses our Total Remuneration Surveys, the world’s most robust salary data source, alongside real-time labor demand data, to provide pricing and guidance on which skills are most valuable to your organization when rewarding, attracting, retaining, and upskilling talent.


Learn more about the power of Skills Pricer in our 2-minute video:

Skills Pay Planner

Reinvent your rewards program with pay-for-skills


Skills Pay Planner is an AI-driven tool that arms your organization with intelligent pay recommendations for individual employees. It helps you understand the premiums associated with certain skills, so you can make informed decisions during compensation planning reviews — to improve retention strategies and avoid the loss of valuable skills and prevent your most critical talent from becoming a flight risk.


Skills Pay Planner provides AI-driven pay suggestions that help ease decisions about how to reward your employees. Using an algorithm that learns from your company data, Skills Pay Planner allows you to automate the pay recommendation process while eliminating individual bias in your pay philosophy.


Skills Pay Planner gives you the control to make pay recommendations that fit within your budget. We work with you to fine-tune your results, using your data to meet your business strategy. The system can be also configured without skills in the equation, using prior historical data and current ranking systems to drive decisions.


Watch our interview series about the shift to a skills-based approach

In this interview series Jean Martin, Head of Products, Career Business, Mercer and Heather Ryan, Compensation and Rewards Product Leader, Career Business, Mercer talk to Binny Rieder, VP Global Compensation and Recognition, IBM and Anshul Sheopuri, VP and CTO Data and AI, IBM about the journey that IBM has taken to plan and adopt a skills-based pay approach in IBM.

Listen to the interview series to gain insights, and get started on your skills-based journey!


Connect with our experts to find out more or request a demo