1、HR guide to managing graduate premiums and preparing for skills-based pay In this guide,we provide data and best practices on managing pay differentials for education plus insights into the shift to skills-based talent management in the age of pay transparency.2IntroductionMany organizations pay hig
2、her salaries to employees with college degrees.Most compensation philosophies outline legitimate reasons for paying employees differently,and education has been historically accepted as a compensable factor for explaining pay differentiation.However,it is disputed as to whether paying a graduate pre
3、mium continues to be a best practice today.Recently,questions have been raised as to whether degree requirements unnecessarily limit talent pools or create inequity through implicit or explicit bias.There are several potential problems:First,so many people earn degrees today that the market is glutt
4、ed with college graduates,many of whom are underemployed with jobs unrelated to their degrees.Second,with the advent of the internet,there are many alternative routes to learning that were not available historically and are more tailored to job requirements.Third,since not everyone has equal access
5、to a college education,paying graduate premiums can perpetuate systemic inequities in opposition to DEI programs.Finally,pay transparency laws are accelerating the need for clarity when it comes to publishing pay ranges for positions,inclusive of compensable factors.For compensation professionals,th
6、e question becomes:“Is it fair to pay graduate premiums in the present era?”To answer this question,organizations need to bring a more discerning lens to job evaluation and really consider whether a degree is a valid requirement,is merely preferred,or makes no difference(or even hampers success in t