[11] 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.

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.

[12] Payscale puts on an annual compensation industry event called Compference[13] and publishes original research on compensation-related topics such as the gender pay gap, college return on investment and salary history.

[16][better source needed] In 2022, Payscale acquired Agora, a software development company focused on pay transparency and employee experience.