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“New people sometimes get very excited about the data and the models — and those are important — but they’re tools, not the starting point,” McMullen said.

The ubiquitous use of generative AI, driven by access to large language models, is promising to fundamentally transform the way we implement pay.

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As the economy continuously transitions from a manufacturing- or production-driven model to one that is driven by knowledge, turnover becomes more costly, Garlick said.

Instead, employers are redirecting spending toward more scalable, defensible strategies, Scott-Wears said, such as compensation technology, pay equity analytics and better modeling tools.

With experience spanning public, private, and unionized environments, Maeve has guided organizations through executive compensation reviews, pay equity compliance, reorganization design, and performance-based compensation models.

No matter what a company’s business model or what their technology is, workers have rights.”

As the focus has increasingly turned to pay for performance , many companies have enhanced the goal-setting process and incorporated additional analytics and data, including peer and industry performance history, forecasts and models of shareholder expectations.