Payscale is an American compensation software and data company which helps employers manage employee compensation and employees understand their worth in the job market. The website was launched on January 1, 2002. It was founded by Joe Giordano and John Gaffney. Mike Metzger served as CEO from 2004 to 2019. Scott Torrey, a 20-year veteran of

SAP Concur SAP Concur (formerly Concur Technologies) is an American SaaS company providing travel and expense management services to businesses. It is headquartered in Bellevue, Washington. SAP SE agreed to acquire Concur Technologies in September 2014 for ...

, started as CEO on August 26, 2019. On April 24, 2014,

Warburg Pincus Warburg Pincus LLC is a global private equity firm, headquartered in New York, with offices in the United States, Europe, Brazil, China, Southeast Asia and India. Warburg has been a private equity investor since 1966. The firm currently has over ...

acquired Payscale in a deal worth up to $100 million. On April 25, 2019,

Francisco Partners Francisco Partners is an American private equity firm focused exclusively on investments in technology and technology-enabled services businesses. Founded in August 1999 and based in San Francisco with offices in London and New York City, Francis ...

announced a majority investment in Payscale at an enterprise value of $325 million.

Overview

Payscale was developed to help people and businesses obtain accurate, real-time information on job market compensation. While Payscale started by crowdsourcing compensation data from employees to power its products for employers, its

Software as a Service Software as a service (SaaS ) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. SaaS is also known as "on-demand software" and Web-based/Web-hosted software. SaaS is co ...

offerings have evolved to allow businesses to utilize multiple compensation data sources, including Payscale's Crowdsourced and Company Sourced offerings as well as data from other providers. Customers can also manage their employee compensation strategy and structure within the platform and perform robust compensation analytics. For employees, the service works via the

Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...

by enabling individuals to submit their job profile and salary data, which is then compared to others like them. They receive a free report on their market worth. The company generates revenue by selling SaaS subscriptions, compensation data and services to employers, to aid in determining correct market rates for hiring, benchmarking and budgeting, and by targeted advertising to employees that visit its website. Payscale surveys its users' income and background, and since 2007, it has published an annual ranking of American colleges and universities by their estimated

return on investment Return on investment (ROI) or return on costs (ROC) is a ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favourably ...

. The rankings have been popular with the public but controversial among scholars of higher education. Payscale puts on an annual compensation industry event called Compference and publishes original research on compensation-related topics such as the gender pay gap, college return on investment and salary history. In 2021, Payscale merged with Payfactors, a leading competitor. The new company operates under the Payscale brand.

References

External links

* {{DEFAULTSORT:Payscale Online databases Companies based in Seattle 2002 establishments in Washington (state) Privately held companies based in Washington (state) American companies established in 2002 Online companies of the United States Internet properties established in 2002 2014 mergers and acquisitions