Payscale

We are excited today to release our flagship 2024 Compensation Best Practices Report! Now in its 15th year and the largest report of its kind, the report distills key data and insights from our annual survey of compensation professionals and HR leaders, revealing the latest workplace and compensation trends in the wake of high inflation, pay transparency legislation, and slowed economic growth. Some of the most important insights revealed in our analysis show that: 💼 Compensation strategy is a major concern in 2024, with 50% of HR leaders identify compensation management as their primary challenge, ahead of recruiting (44%), retention (42%), and engagement (37%). While only 53% have a formal strategy in place, there’s a push towards establishing one and improving pay conversation training among managers. 🔍 Pay transparency is a growing trend, with 60% of organizations now posting pay ranges, up from 45% in 2023. This move towards transparency is influencing workplace dynamics, leading to increased inquiries from employees about their compensation. 💸 Organizations anticipate a slight decrease in average base pay increases to 4.5% in 2024 from 4.8% in 2023. Despite a lower forecast, some industries could see hikes as high as 6%. Notably, only 79% of organizations plan to give raises, a drop from 86% last year. 🛠️ In 2024, 34% of organizations have eliminated degree requirements for salaried roles, with 58% focusing on compensating for competitive skills, indicating a shift towards skill-based pay and away from traditional education prerequisites. As we look to the economic and job-market landscape lying ahead of us in 2024, our Compensation Best Practices Report offers a comprehensive analysis of the current compensation environment. As our own Chief People Officer, Lexi Clarke, explains: "This year’s report tells us that while the economy may be in flux, employee expectations have not swayed... The compensation space is evolving faster than ever—leveraging quality data resources... will help HR teams catch up and stay on top of changes as the evolution continues." Read the full report today 👉 https://lnkd.in/dsauyJ3A.

What are the habits that set high-performing compensation teams apart? Join a panel of compensation leaders from United Therapeutics, DPR construction, National Debt Relief, and Payscale this Thursday, July 25th at 9 AM PST/12 PM EST as they explore the key habits that have made their compensation teams so successful. Specifically, we will cover actionable best practices and insights to help you and your team, including: - Insights into the daily habits of top compensation teams - Strategies that drive success in effective compensation management - Practical tips for optimizing compensation processes and outcomes This event is accredited by HRCI and SHRM. Join us for this important webinar to take your comp team to the next level: https://lnkd.in/d3DN4CqC

Vermont is the latest state to join the pay transparency movement. 🔎📃 The National Law Review recently reported that on June 4, 2024, Vermont Governor Scott approved H.704, a new pay transparency law set to take effect on July 1, 2025. This legislation aligns Vermont with other states like California, Colorado, and New York in addressing pay disparity concerns. The law mandates that employers with five or more employees disclose the compensation or range of compensation for any job physically located in Vermont or remote positions tied to a Vermont office. This applies to both internal and external job postings, as well as transfer and promotion opportunities. Notably, the law does not require the disclosure of benefits or other compensation, although employers may choose to include this information. For tipped positions, advertisements must specify that the job is paid on a tipped basis and disclose the base wage or range of base wages. Commission-based roles need only state that they are compensated on a commission basis, without detailing the anticipated commission. Employers are required to set compensation in good faith, but they retain the flexibility to adjust offers based on factors like an applicant’s qualifications or labor market conditions. Anti-retaliation protections are also included, ensuring that employees can exercise their rights without fear of retribution. Enforcement will be handled by the Vermont Attorney General or state’s attorney, with potential penalties including restitution of wages and other benefits. As Vermont joins the growing list of states with pay transparency laws, it's crucial for employers to conduct a review of their job postings and train relevant personnel. Stay tuned for further guidance from the Vermont Attorney General’s Office, expected by January 1, 2025. Read the whole article: https://lnkd.in/gXU2e656

We take our customers' feedback so seriously that we've implemented a new tool designed to amplify your voice in product development. In Episode 97 of the Comp & Coffee podcast we explore Payscale's in-product feedback tool and discuss how this tool allows users to submit their ideas and provide context to emerging market challenges. These insights are shared with both our product team as well as our compensation community, allowing other compensation professionals to weight in and help us prioritize the issues that matter most to you. As we collect and summarize this feedback, it essentially democratizes the way your input shapes the products you know and love. This is a significant step forward in ensuring that your voices are heard and echoed throughout the Payscale business. We are eagerly looking forward to the feedback that will come in over the next few weeks following this initial launch. This initiative is about making sure we are aligned with your needs and continuously improving our offerings. Tune in to Episode 97 of the Comp & Coffee podcast to learn more: https://lnkd.in/gp33-exJ #Payscale #CompAndCoffee #ProductFeedback #CustomerEngagement

Seize your opportunity to speak at Compference24! 🎙️ We are seeking compensation, reward, and HR practitioners to share their voices in this year’s agenda. You have stories to tell to help the compensation community grow, and we have a (virtual) stage to elevate your expertise. Learn more about how you can be a leading voice in modern compensation management as a part of Compference24. Spots are limited, so be sure to sign up today to make your voice heard. #compensation #paytransparency #learning

Congratulations to Angel City Football Club for their recognition as the 2024 ESPN Humanitarian Team of the Year! 🥇⚽️ As a founding sponsor of ACFC, we are overjoyed to see this recognition of their tireless advocacy for equity, community development, and empowerment for all women in sport and beyond. Angel City Football Club was founded with a mission to make a lasting impact both on and off the pitch by leveraging the unifying power of sport to advance equity and support women's sports and communities. Their dedication is evident in every choice, action, and strategy, including reallocating 10% of sponsorship dollars directly into community initiatives. With over $75 million in secured sponsorship revenue, Angel City ensures that at least $7.5 million will benefit their community. Over the last four years they, along with their partners, have: - Impacted more than 150,000 Angelenos, delivering nearly 2 million meals to those in need - Created programming for 160 women and non-binary individuals to earn certification and secure coaching jobs - Distributed 300 tons of fresh produce to Los Angeles families - Provided $150,000 in grants through IFundWomen and their own Angel City Player 22 Fund to support retired NWSL players as they pursue education and entrepreneurship in the next chapter of their lives As ACFC's official compensation management partner, Payscale is committed to supporting equitable compensation and closing the gender pay gap. Our collaboration aligns seamlessly with our shared values, and we are continually honored to work together to foster a more equitable world. Congratulations again, Angel City Football Club, on this well-deserved recognition! We look forward to continuing our partnership and supporting your incredible mission. https://lnkd.in/gSPCDAe8

As artificial intelligence (AI) reshapes the workplace, it's crucial that HR play a pivotal role in AI adoption. 🌐 HR Dive writes that a recent report from McLean & Co. highlights that HR is often sidelined in AI strategy discussions, despite its role in managing change and upskilling the workforce. An AI strategy should serve as a compass, directing both technical and people-related AI activities. It's about more than just technology—it's about aligning AI with the company's broader goals to ensure a seamless transformation. 🧭 However, without HR's input, organizations risk falling into pitfalls such as technological dependency, unintentional bias, and compromised data security. The report outlines steps for a successful AI adoption, including forming a steering committee, assessing AI maturity, identifying valuable use cases, and creating a roadmap that aligns with organizational priorities. Communication across all levels is key. Every employee, regardless of their role, may require AI training to navigate the evolving landscape. A PeopleScout and Spotted Zebra report suggests that up to half of the workforce will need reskilling within five years. Meanwhile, a Boston Consulting Group report found that 57% of workers are eager for retraining opportunities. In the age of AI, it's clear that HR's role is more critical than ever. Bring HR to the forefront of AI strategy, and ensure a future where technology and talent grow hand in hand. 🚀 🤝 Read the whole article here: https://lnkd.in/gUEeBJaZ

Building a business case for job architecture, new surveys, or technology implementation? We've got insights that can help! 🔎📊 In episode 97 of the Comp & Coffee podcast, we explored what set top-performing organizations apart in 2023. Key findings include: - Top performers prioritize HR investments, including HR technology. - They embrace pay transparency, sharing pay ranges even when not legally required. - They ensure employees understand the rationale behind their pay. - They invest beyond traditional surveys to gather comprehensive insights. For a deeper dive, check out our Top Performers Report: https://lnkd.in/g3g_ufvY. It's a concise report, packed with valuable data points and insights to support your business. Listen to the whole conversation today: https://lnkd.in/gp33-exJ

In today’s competitive job market, financial wellness is not just a personal concern—it's a strategic HR focus. 🏦 💼 A recent survey by Betterment revealed a striking insight: nearly half of the employees would consider switching jobs for an employer who offers an emergency savings account (ESA). Yet, only 2% of employers currently provide this benefit, despite the clear signal that ESAs could be a powerful tool in recruitment and retention. Financial anxiety is a productivity killer. 54% of employees admit that such stress hinders their focus at work. ESAs, which are post-tax savings designed to cover unforeseen expenses, could be the answer to this pervasive issue. Compensation goes beyond the paycheck. It's about creating a comprehensive package that supports employees' overall well-being. ESAs represent an opportunity for employers to stand out in the marketplace and show a genuine commitment to their workforce's financial health. The recent Secure 2.0 legislation has opened new doors for integrating ESAs with retirement accounts, although some employers might find a standalone ESA more straightforward to implement. It may be time for HR professionals to advocate for ESAs within their organizations. By doing so, they're would not just be offering a benefit—they'd be investing in their employees' peace of mind and loyalty. Read the article from HR Brew: https://lnkd.in/gBvxDSsR #HRStrategy #EmployeeWellness #FinancialSecurity #EmergencySavings

The tug-of-war between remote and in-office policies is more pronounced than ever. 🏢 🏠 Fortune recently reported that Dell's workforce is currently experiencing this tension, with nearly half of its U.S. employees choosing remote work over promotions. Despite Dell's return-to-office (RTO) policy, which includes tracking office attendance and VPN usage, the allure of working from home remains strong. "I can do my job just as well from home and have all of those personal benefits as well," one employee shared with Insider. This sentiment is echoed globally, as a third of Dell's international workforce also opts to stay remote. The policy, which requires hybrid employees to work in person for at least 30 days per quarter, aims to foster in-person connections. However, many employees find in-person work impractical, especially when teams are spread across different time zones. The resistance to RTO policies isn't unique to Dell. SAP faced a remote-work rebellion, and a FlexJobs survey revealed a significant portion of workers would take a pay cut for the option to work remotely. It seems pretty clear: many employees value flexibility. Yet, companies continue to reward in-person work. Live Data Technologies reports that hybrid and in-person employees are more likely to be promoted. CEOs argue that presence fosters ownership and connectivity. Stanford economist Nick Bloom, however, presents a different perspective. His study in Nature highlights the benefits of hybrid work, noting increased job satisfaction, reduced turnover, and maintained productivity and promotion rates. The data suggests that flexibility may not just be a perk, but a strategic advantage for retaining talent and enhancing productivity. It's time for businesses to weigh the evidence and consider if rigid RTO policies are truly beneficial, or if a more flexible approach could be the key to future success. Read the article here: https://lnkd.in/dZhiWU3v