To stay competitive in a tight labor market, it's crucial to recognize and fairly compensate for in-demand skills that command pay premiums. Simply benchmarking salaries by job titles without considering the value of these "hot" skills risks losing top talent to competitors. Skill premiums can vary, and compensation management software can help calculate the appropriate pay adjustments. Options include adding premiums to base pay, offering periodic bonuses, or providing one-time cash incentives for acquiring new skills. The key is to reward employees competitively for their valuable, in-demand skills.

Join for free to read