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.

How can companies, regardless of size, ensure they're offering competitive compensation? 📈💵 In episode 96 of the Comp and Coffee podcast, Payscale's Gerard Smith shared that the answer lies in leveraging survey data. 📝 There's pretty much a survey out there for any company in any industry. Whether grappling with inflation, low unemployment rates, or the cost of living, companies are encouraged to tap into third-party survey data. This data serves as a strategic tool to align with business goals and maintain a competitive edge in the labor market. Interestingly, smaller organizations are often the ones leading the charge. These proactive companies utilize third-party survey data to effectively manage their workforce and ensure the overall health of their business. Access to comprehensive data isn't just a luxury for large corporations—it's a necessity for all businesses committed to success. By staying informed and proactive, companies of all sizes can navigate the complexities of compensation and thrive in today's competitive environment. Listen to the full episode here: https://lnkd.in/gK_ikFDW #BusinessStrategy #CompensationData #WorkforceManagement

We've all seen it this year: the ratchetting of salary offers to attract and retain talent during the Great Resignation💵, runaway inflation📈, increased scrutiny on pay equity👀, and recent legislation around pay transparency⚖️. These are just some of the major factors that have made effective compensation management strategy one of the most important initiatives for organizations of all sizes to implement in 2024. But where to start? What about all the challenges facing the market? And how will it impact your organization? Join a panel of compensation leaders from Mckinstry, Expedia Group, Stitch Fix, and Payscale on Thursday, July 18th at 9 AM PST/12 PM EST as they explore how these factors have led to the development of new and innovative compensation strategies. Specifically, we will cover best practices and insights to help you: - Respond to rising market challenges - Navigate change within your organization - Adapt to evolving compensation expectations This event is accredited by HRCI and SHRM 🙂 RSVP to join us for this important webinar today: https://lnkd.in/gMHXV8va

With Gen Z set to constitute 30% of the workforce by 2030, it's crucial for HR professionals to adapt. A recent report from HR Brew shared insights from Aflac's CHRO, Jeri Hawthorne, on how to appeal to this emerging demographic. ❤️🩹 First, wellness is one of the most important components. A staggering 65% of Gen Z workers emphasize the importance of mental wellness benefits. Aflac has been proactive in this area, offering behavioral and financial wellness benefits since 2018 and 2019, respectively. It's clear that supporting employee wellness in a holistic manner can be a significant draw for Gen Z candidates. ⏰🏡 Flexibility is another key factor. The desire for flexible schedules and the option for hybrid or remote work is strong among Gen Z, with 75% expressing a preference for these work arrangements. Aflac's hybrid model, implemented post-pandemic, resonates with this need for flexibility, facilitating both in-person collaboration and remote work. 🌍 Last, Gen Z seeks purpose and alignment with their employer's values. Aflac's long-standing commitment to community initiatives, such as their efforts to end childhood cancer, resonates deeply with Gen Z's desire to work for organizations that contribute positively to society. Understanding these preferences is essential. By offering competitive compensation packages alongside wellness solutions, flexible work environments, and a mission-driven culture, organizations can attract and retain the best of Gen Z talent. 💼 Read the article today: https://lnkd.in/eFK4rsqh

📰 Today, we released Payscale's 2024 College ROI Report, ranking the best-value colleges based on median salary by mid-career, minus the cost of attendance. The new research found that a college education remains a competitive advantage for job seekers, while those without a degree may face substantial pay inequities, even for positions where a degree is not required. We are also releasing the first College Impact on Compensation Report that examines differences in pay between college graduates and non-college graduates. 💵 College ROI Report: https://lnkd.in/gZZP_M6d 📈 College Impact on Compensation Report: https://lnkd.in/gnFA5qp6

Time is running out to speak at Compference24 ⏰ https://lnkd.in/gQYPYnMy Sign up by July 19th to share your voice. The compensation community is ready to take on the future of modern compensation management. Are you ready to help pave the way?

4-day workweek: Steve Cohen, the billionaire owner of the New York Mets and CEO of Point72 Asset Management, recently shared his insights on the future of work during a CNBC Squawk Box appearance. Cohen suggests that the rapid advancement of AI technology is a key driver behind the potential shift to a shorter workweek. He notes that Fridays are often the least productive days, hinting that AI's efficiency could make a four-day workweek an "eventuality." While the allure of AI revolutionizing productivity is strong, with figures like former Treasury secretary Larry Summers speculating on its potential to replace "almost all" forms of labor, this transformation of course won't happen overnight. Summers himself tempers expectations, not foreseeing a productivity miracle in the immediate few years. Interestingly, Cohen's perspective isn't just theoretical. His investments reflect a belief in the rise of leisure and experiences, with significant stakes in golf and sports, anticipating that these sectors may thrive with people having more free time. Yet, Cohen is cautious not to set a timeline for this shift, and he underscores that at his hedge fund, a four-day workweek is not imminent, especially when the markets are open on Fridays. The concept of a shorter workweek isn't entirely new. Some companies have already adapted by making Fridays meeting-free or observing a drop in office occupancy. The trend towards more flexible work arrangements is undeniable, but as Cohen points out, it's not uniform across industries. For organizations like Payscale, which specialize in compensation management, these shifts in work patterns present both challenges and opportunities. As the debate continues, it's clear that the implications of a four-day workweek will be far-reaching, affecting everything from productivity to how we value and compensate labor. Read the full article from Fortune: https://lnkd.in/gkK649RG

Today, we’re announcing multiple enhancements to our core suite of products 🎉 Payscale has expanded the data and tech resources that equip companies to make better compensation decisions. These enhancements offer deeper insights, leveraging a constantly growing data set and new features to surface compensation trends for organizations. It also gives companies more expansive best practice resources that support how companies approach pay communication and pay equity. This launch follows Payscale's 2024 Top Performers Report, which revealed that top-performing companies are significantly more likely to invest in compensation management software. In 2024, 59% of top performers reported using, purchasing, or evaluating this software, compared to only 50% of non-top performers. Learn more about the latest in payscale innovation 👉 https://lnkd.in/gwe2Dhb6

More and more companies are sounding the call to return-to-office (RTO). And a recent article from HR Dive helps remind us that it's crucial to examine the impact of RTO policies through a gender lens. A recent discussion with Caroline Fairchild, editor-in-chief at Lean In, sheds light on some surprising findings. While the benefits of remote and hybrid work for women are well-documented, Fairchild points out that men are reaping "disproportionate" benefits from on-site work. This observation is backed by data from the Women in the Workplace 2023 report by Lean In and McKinsey, which reveals that men feel more connected to their organization's mission and receive better mentorship when working on-site—key factors in career progression. Interestingly, the ambition to climb the corporate ladder is equally strong among remote women, hybrid women, and on-site men, with more than 80% expressing interest in promotions. This challenges the myth that flexible work is primarily a women's issue. In fact, flexibility ranks highly among desired benefits for all workers, signaling a shift in employee expectations post-pandemic. However, the push for RTO raises questions of equity, particularly around proximity bias—the tendency to favor in-person workers for promotions. Companies like Dell are already drawing lines between "remote" and "hybrid" workers, with clear implications for career advancement. At Payscale, we believe it's essential for companies to ensure that the benefits of being in the office are accessible to all employees, regardless of their work arrangement. As we continue to adapt to hybrid models, addressing and mitigating proximity bias is not just a matter of fairness—it's a best practice for nurturing a thriving, inclusive workforce. Read the article today: https://lnkd.in/gD-2kw3h #WorkplaceEquity #HybridWork #GenderBias #ProximityBias #RTO #FutureOfWork

The past couple months have seen massive shifts in the world of pay transparency legislation. Are you up-to-speed on these game-changing developments and their direct impact on you? 🤷♀️ Join Payscale’s Chief Product Evangelist, Ruth Thomas, and Senior Corporate Attorney-Employment, Lulu Seikaly, on Thursday, July 11th at 9 AM PST/12 PM EST as they delve into the dynamic world of pay transparency legislation, detailing the current landscape and future implications. Specifically, they will cover: - The latest legislations enacted and emerging across various US states - Updates on global regulations spanning Canada and the EU - Strategic insights on how to navigate and adapt to forthcoming pay transparency mandates This event is accredited by HRCI and SHRM 📑 Don't miss out on this crucial session! Register to join us today: https://lnkd.in/gbS2KYVZ