The Advisors' Blog

In addition to the usual topics addressed in PayScale’s latest annual Compensation Best Practices Report (available for download), it also includes the results of its survey on how HR professionals are using AI. Survey respondents said they’ve personally used AI tools in the last 6 months for a number of tasks. Not surprisingly, many of the current uses are clearly not executive compensation-related, but a few might be. (The survey doesn’t distinguish.) Some of the use cases include:

– Market pricing and benchmarking (19%)

– Writing a compensation philosophy (12%)

– Analyzing for pay equity (9%)

– Recommending pay increases (8%)

When it comes to AI tools for compensation benchmarking, the most common (current) position was “I am cautious or hesitant about using any AI for compensation decisions, regardless of type” (28%). That said, 22% of respondents said “I trust general-purpose AI tools (e.g., ChatGPT) to support compensation benchmarking,” and 21% indicated that they only trust “compensation-specific AI tools that have methodologies and controls.” (16% were unsure.) Only 17% of the survey respondents were from public companies. It would be interesting to see similar questions asked to a group of primarily public company HR professionals.

– Meredith Ervine