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 offerings have evolved to allow businesses to utilize multiple compensation data
sources, including PayScale's Crowd Sourced 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
For employees, the service works via the Internet 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 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.