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.

Is a college education still worth the investment? 🎓💵 This question is becoming increasingly relevant as alternative paths to high-paying careers gain traction. Payscale’s latest research report delves into this topic, comparing the pay differences between college graduates and non-college graduates. With college enrollment rates declining and tuition costs rising, many are reconsidering the value of a traditional college education. Our College ROI Report provides a data-driven answer. By ranking colleges based on the median salary over 20 years minus the cost of investment, the report concludes that college can still be a worthwhile investment—if students are strategic about their career goals. For employers, this research offers valuable insights on managing graduate premiums and preparing for a shift towards skills-based pay. Discover more about the findings and how they can impact your career decisions and hiring strategies in our full report. https://lnkd.in/g-YE57-d

Managers are feeling the squeeze, and it's impacting their well-being. A recent Perceptyx report highlights that while employee engagement has rebounded to pre-pandemic levels, manager well-being is "dangerously low." On a 5-point scale, managers scored 3.69, lower than both individual contributors (3.77) and executives (3.84). Emily Killham from Perceptyx notes, "Organizations still have work to do to foster a sense of belonging and inclusion among all employees." Middle managers, in particular, face unique challenges, often receiving little training while balancing demands from both direct reports and senior leaders. The report underscores the importance of career development and inclusion. Managers who feel a sense of belonging are twice as likely to stay with their company, and those with career opportunities are 2.2 times more likely to remain. Confidence in leading through change is also crucial. About half of managers feel confident in their company's ability to manage change effectively, signaling potential areas for improvement in well-being and retention. Managers play a pivotal role in talent development and significantly impact employees' mental health, sometimes more than doctors or therapists. Effective managers check in on emotional states, provide help, and offer constructive feedback. Investing in manager training and development is essential. New managers, especially, need guidance on leadership, building better habits, and applying new skills to support employee growth. Empowering managers isn't just beneficial for them—it can boost retention and address talent challenges across the organization. Read the whole piece from HR Dive today: https://lnkd.in/eHMVbm-p

Minnesota is taking a significant step towards pay transparency. 💵🔎 Starting January 1, 2025, employers in the state with 30 or more workers will be required to include salary ranges and details on benefits in their job postings. This new law, signed by Gov. Tim Walz, aims to foster a more transparent and equitable job market. Kristin Bahner, who authored the legislation, noted that companies embracing pay transparency often see more qualified candidates and increased productivity. Minnesota joins a growing list of states like California, New York, Illinois, and Colorado in mandating salary transparency. This trend has even influenced employers in states without such laws to start sharing pay ranges, as job-seekers increasingly expect this information. Colorado's law, for instance, goes beyond just salary ranges, requiring details on bonuses, commissions, and benefits, and even mandates internal sharing of new job opportunities with expected salaries. Illinois and New Jersey have similar provisions. For Minnesota employers, this means it's time to review current pay rates, policies, and practices. As noted by attorneys at Stinson, compliance might require financial investment and adjustments to existing pay practices to align with market rates. The Federal Reserve Bank of Minneapolis highlights that hiring managers may need to become more knowledgeable about competitive market pay to meet these new requirements. As the landscape of pay transparency evolves, staying informed and prepared will be crucial for HR departments and employers alike. Read here: https://lnkd.in/g3-ce-G4

Part-time positions are on the rise as full-time roles stagnate 📊 According to a report from Indeed Hiring Lab, part-time job postings now represent nearly 32% of all listings, up 2.5 percentage points from May 2022. Full-time roles, however, still dominate at 62%. Interestingly, sectors like beauty and wellness have seen the most significant rise in part-time options, jumping by nearly 27 percentage points in the past two years. The shift towards part-time roles spans various industries, with marketing, hospitality, and media seeing a 10 percentage point increase. This trend may be driven by employers seeking more flexible options to attract workers or a response to a cooling labor market. At the same time, the rise in contingent and contract work is becoming more prevalent. A World Employment Confederation survey highlights that business leaders are increasingly concerned about training workers quickly enough to keep up with technological advancements like AI. As a result, many are opting for a more flexible workforce. HR leaders, take note: as contract work grows, focusing on retention, especially in IT, will be crucial. Motion Recruitment's report indicates that a majority of enterprise employers plan to shift funds from employees to contractors. The evolving labor market dynamics underscore the importance of flexibility and adaptability in workforce planning. How is your organization responding to these trends? Read the article here: https://lnkd.in/g6YaCAA3

In a world where we spend one-third of our lives working, equity in the workplace isn't just a goal—it's a necessity. ⚖️ 💼 💵 Scott Cawood, Ed.D, CCP, GRP, CSCP, CBP, CEO of WorldatWork, recently shared some timely insights on this topic in his article "Conversations That Matter: Equity in Focus." During the Total Rewards’24 conference, Scott had the privilege of speaking with sports icons Megan Rapinoe and Dominique Dawes. Their experiences highlight that even at the pinnacle of success on world renowned stages, systemic inequities persist. As Scott noted, "Professional athletes still experience the same systemic issues as our 9–5 workplaces." This is one of the many reasons why Payscale is so proud to be a founding partner of Angel City Football Club and the vision we see of women's sports leading the way to positive change for all. "If there’s a lack of pay equity, there’s a lack of equity," Scott writes. At the end of the day, equity is about more than just pay. At Payscale, we believe every letter in DEIB matters. Any company intent on recruiting a diverse workforce must also strive to develop a sufficiently equitable and inclusive culture that fosters a sense of belonging for all. It's hard work that takes commitment. Based on our interactions with members of the HR and compensation community, we know these professionals are dedicated and ready to continue working for equity in the workplace. Read Scott Cawood's full article for more insights: https://lnkd.in/dw7RmY8U #Equity #TotalRewards #PayEquity #WorkplaceFairness #Payscale

Gen Z are increasingly becoming NEETs by choice—not in employment, education, or training. 🚫💼📚🛠️ According to a report from Fortune, a growing number of Gen Zers are opting out of traditional adulthood milestones like employment and education. According to the International Labour Organization, about a fifth of people aged 15 to 24 worldwide in 2023 are NEETs (Not in Employment, Education, or Training). In Spain, over half a million young people are neither studying nor working. In the U.K., almost three million Gen Zers are economically inactive, with 384,000 joining the "workless" class since the Covid pandemic. Why are they making this choice? Economic challenges play a significant role. Young people today earn less, have more debt, and face higher living costs than previous generations. TransUnion reports that 20-somethings now earn around $45,500, compared to $51,852 (adjusted for inflation) for millennials at the same age. The high cost of living and inflated house prices make saving for the future seem futile. As one Gen Zer noted, "I’m just focusing on the present because the future is depressing." Moreover, the hustle culture that once defined millennial ambition doesn't resonate with Gen Z. Many prefer jobs that prioritize well-being over climbing the corporate ladder. Teaching and trade jobs are becoming more attractive due to their manageable hours and lower stress levels. Mental health is another critical factor. Gen Z faces nearly twice the stress levels of millennials, with more than a third suffering from common mental disorders like anxiety and depression. This mental health crisis contributes to their reluctance to join the workforce, especially when workplace cultures are often deemed toxic. Understanding these trends and then implementing an effective and wholistic compensation strategy is crucial for addressing the challenges and needs of the next generation as they enter the workforce. Read the article here: https://lnkd.in/g4VapDQi

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