AI‑Driven Compensation Strategies That Win and Retain Talent
The reality of the digital age is that top-performing employees can change jobs with a click. Human resource leaders who want to compete for scarce talent have increasingly turned to artificial intelligence (AI) tools to redefine how they analyze and structure pay. This use of AI in workforce management is the strategy companies use to stay competitive.
AI is not a replacement for HR. Instead, it’s a tool HR leaders can use that provides real-time insights into current salaries by analyzing vast labor market datasets. It can help companies with data-driven compensation strategies rather than relying on instinct and outdated benchmarks.
AI-driven compensation strategies enable leaders to balance business goals with employee expectations, turning pay into a genuine differentiator for attracting and retaining talent.
How HR Leaders Are Using AI in Workforce Management
Given the power of AI tools to help HR teams benchmark salaries with precision, companies are increasingly putting them to use. A recent survey by Korn Ferry revealed that about 25% of 5,717 companies in 138 countries reported using AI to help determine compensation. Another 22% apply AI for external benchmarking, and 63% are considering adoption.
This pace of adoption suggests that the shift is less experimental than accelerating into mainstream practice. AI is quickly helping compensation teams close information gaps. For new, hybrid, or niche roles, traditional salary surveys often fall short. AI models ingest data from employer-reported systems to infer market value for these roles.
One example comes from Payscale’s tools, which combine AI modeling with a peer-based dataset to propose salaries even when direct comparators don’t exist. Companies have indicated that they place great trust in such AI-driven estimates. Payscale reports that 88% of its AI-generated salary matches are accepted, compared with only 12% prior to using the AI model.
Other Uses for AI in HR
AI in HR is expanding far beyond compensation analytics. According to Gartner, HR leaders are now using AI to enhance nearly every stage of the employee lifecycle, from recruiting and onboarding to engagement, development, and retention.
In talent acquisition, AI-powered tools can screen applications, rank candidates by skills, and predict job performance based on past hiring data. This can speed up recruitment and help minimize human bias in recruiting talented employees.
Once employees are hired, AI can personalize their experience. Organizations are applying machine learning to identify training needs and recommend learning paths for new employees. They can also predict which employees are at risk of burnout or disengagement.
Chatbots and virtual assistants are taking over routine HR tasks such as benefits questions and policy lookups. AI is also helping HR forecast workforce trends, such as turnover and skills shortages, enabling HR leaders to plan more effectively.
Touro University Worldwide’s MS in Human Resources
Touro University Worldwide offers an online Master of Science in Human Resource Management (MSHRM) that appeals to both early-career and seasoned HR professionals.
The program is structured into eight-week terms, offering flexibility and a faster pace. Students can finish in about one year if they take two courses per term across six consecutive sessions.
The program’s curriculum covers core HR topics, including ethics and legal compliance, competency development, change management, performance assessment, and strategic planning. Students also develop expertise in HR technology trends, including the incorporation of AI tools and data analytics.
Students study foundational theory and best practices. They also engage with cutting-edge tools that mirror what real HR teams use today. Graduates have a strengthened toolset for a variety of HR leadership roles, including compensation and benefits manager, training and development manager, HR director, or organizational development consultant.
The next HR frontier lies in designing smarter, fairer compensation systems that employees can trust. AI-powered tools can help HR teams benchmark salaries with precision and transparency. Graduate students in HR can learn to apply AI innovations to create workplaces where employees feel valued and motivated to stay.
