Warburg Pincus, a private equity firm has agreed to take a majority stake in PayScale, a software startup which offers compensation data to companies as well as individuals.

The private equity firm will invest up to $100 to recapitalize and grow the company to allow it to develop software tools and new data for the human resources market.

PayScale which is a Seattle-based Company was founded in 2000 by Joe Giordano, a former Microsoft manager and it is a specialist on compiling data on individual compensation. PayScale competes with companies such as Salary.com.

According to Warburg Pincus website, over the past two decades the private equity firm which has more than $37 billion in assets under management has invested approximately $3 billion in software companies.

As a result of the investment, PayScale which has 155 employees plans to enhance its products and increase its workforce. Currently the company has more than 40 million salary profiles and that data aids business customers make informed salary decisions.

PayScale helps employees to figure out how much they should be getting paid in their jobs. It also helps companies set compensation ranges for employees, providing an immediate view of what’s going on in the current job market.

As of 2011, PayScale had raised about $32 million in venture financing which included cash from Trinity Ventures, Fluke Venture Partners, Montlake Capital and Madrona Venture Group.

According to the Managing Director of Warburg Pincus, Justin Sadrian PayScale’s offerings help its customers to make more smarter and accurate decision to run their organization in a cost-effective manner.

PayScale faces competition from San Francisco based company, Glassdoor . Mike Metzger, Chief Executive Officer of PayScale said that Warburg Pincus looks for businesses that have positive growth.

Customers using PayScale company’s online tools include Covenant Dove, Cummins, Clemson University, Warby Parker and Zendesk.