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1、AN EMPLOYERS GUIDE TO THE HOTTEST THEMES, JOBS, AND SKILLS IMPACTING PAY IN 2020. This whitepaper summarizes the top themes, best and worst industries and occupations, fastest growing jobs and most compensable hot skills of 2020. This summary can inform compensation planning for 2021 with guidance f
2、or employers on the importance of talent strategy and how compensation management software can help you attract and retain top talent. 2 2021 IS GOING TO BE A LANDMARK YEAR FOR TALENT STRATEGY 2020 was a rough year by any standard. The pandemic forced people into their homes, unemployment hit a high
3、 of 14.7 percent in April, and the economy has remained volatile in the wake of COVID-19. 2020 was also a breakout year for many businesses. Not every organization suffered financial losses as a result of the pandemic. Some saw dramatic surges in business. But every organization has had to weather c
4、hange, including how to figure out models for remote work and responding to employee demands for safety, health and wellness, and work-life balance. While anxiety was high, 2020 was a watershed moment for businesses, a turning point that forced many to make critical decisions that would ensure survi
5、val and spur growth after a difficult year. As a result, many organizations became smarter, faster, leaner and better organized around their core values. They learned to zero-in on what was working for their business and discard what wasnt. They learned where to invest and why. They took chances. Fo
6、r some, 2020 was a rebirth. So what does that mean going into 2021? Talent strategy will be critical in the future. National unemployment was back down to 6.7 percent in November and will likely continue to get tighter moving into 2021. Though we still have a ways to go before we are out of the wood
7、s, organizations need to start thinking about how they are going to reward and retain employees when the economy recovers. They also need to start looking at how their talent market has shifted when it comes to hiring and what talent is going to expect going forward. The future will not look like th
8、e past. The pandemic is going to have a long-term massive impact on employee perception for how organizations ought to value and treat workers. According to Global Workplace Analytics, 80 percent of employees want to work from home at least some of the time, and employers now and employers alike kno
9、w that remote work is not only possible, but more productive. The pressure to provide increased workplace flexibility will be high. In addition, top talent is going to gravitate toward organizations that care about safety, health, and overall wellness, including mental health. They are also going to
10、 seek out organizations that have commitments to diversity, equity and inclusion and demand fairness and transparency when it comes to pay structures and rewards. Employees who feel they were not treated well by their organizations in 2020 are going to start looking for better opportunity elsewhere
11、as soon as the economy recovers, if they arent already. The resulting shift in the labor market may necessitate organizations realigning their entire approach to talent. Compensation will be an intrinsic part of these expectations and policy changes. Employees have always been motivated by their abi
12、lity to progress, achieve recognition, and increase their value within an organization. Top talent will be evaluating opportunities by competitive pay, benefits, workplace culture and flexibility, fairness to workers, and overall transparency. These were trends before COVID-19 and will only grow in
13、strength and expectation following the pandemic. Given the seismic impact of COVID-19 on the labor market and the ripple effect remote work and DEI will have on pay structures, organizations would be wise to increase budget for compensation strategy, including investment in compensation data and tec
14、hnology in 2021. This will allow them to respond to changes in the market, price jobs accurately against location and skills, communicate with managers about how to have pay conversations in challenging times, and set themselves up for future success as an organization with a caring, data-backed, an
15、d consistent approach to managing talent. 2020 YEAR IN REVIEW Top Themes and Thought Leadership Best and Worst Industries Best and Worst Occupations Fastest Growing Jobs Hottest Skills by Occupation Methodology 3 PG.4 PG.6 PG.10 PG.11 PG.12 PG.15 4 A LOOK BACK ON THE THEMES DRIVING THOUGHT LEADERSHI
16、P IN 2020 PayScale released a number of new research reports in 2020 intended to capture the themes of the year wage growth during the COVID-19 economy, the rise of remote work and its impact on compensation strategy, and the growing importance of pay equity. Here is a summary of the top thought lea
17、dership: WAGE GROWTH IN A COVID-19 ECONOMY REPORT PayScale looked at uncontrolled wage growth by occupation, industry and location to tease out insights for how wages have been impacted by the pandemic. The COVID-19 Wage Growth Report showed that wage growth took the biggest hit in March. Retail and
18、 Food however, this varies by occupation. PayScale also provided recommendations for how to approach pay strategies for remote employees. Get the Report Now Get the Report Now 5 PAY EQUITY ANALYSIS AND THE RACIAL WAGE GAP REPORT 2020 was also a landmark year for social justice. Protests over police
19、brutality and racial injustice into a nationwide discourse. The attention resulted in corporations deepening commitments to Diversity, Equity and Inclusion (DEI), including pay equity to close the racial wage gap. PayScale released an updated Racial Wage Gap Report, summarizing both the wage gap and
20、 the opportunity gap that contributes to the disparity in career earnings over a lifetime. PayScale also offers a guide on how to address wage gaps through pay equity analysis, including how to obtain buy-in from both legal and executive stakeholders and how to work with third-party partners to anal
21、yze, monitor and maintain pay equity over time. ADDITIONAL THOUGHT LEADERSHIP FROM PAYSCALE IN 2020 Does Pay Transparency Closes the Gender Pay Gap? Pay transparency has been touted as a way to close the gender pay gap, but does it work? We looked at the data to find out. View the report. 2020 Gende
22、r Pay Gap Report We analyze the gender and racial pay gap controlling for job title and experience and offer guidance on how to advocate for pay equity analysis. View the report. 2020 Compensation Best Practices Report We survey thousands of organizations and provide unparalleled insight into trends
23、 on pay increases, market analysis, pay communications and total rewards. View the report. PayScale Index We look at wage growth trends in the United States and Canada on a quarterly basis with insights by industry, occupation, and major metro or province. View the report. ATTENTION COMP PROS The Co
24、mpensation Best Practices Survey for 2021 is open for participation until December 31, 2020 by anyone who manages compensation for their organization. Get the Report Now 6 THE BEST AND WORST INDUSTRIES TO WORK FOR IN 2020 PayScale measured wage growth and captured employee sentiment by industry. Emp
25、loyers can use this data to compare how their organization fares against a standard. For example, organizations that conduct employee engagement surveys can use a similar methodology and compare their score averages for Job Satisfaction and Job Stress to the industry standard shown by PayScale to se
26、e where they may fall against competitors. Employers can also make sure they are budgeting enough for pay increases to off-set the average wage growth in their industry and to ensure fair pay for workers who stuck with them in tough times. Wage Growth Job Satisfaction % Highly Satisfied & Fairly Sat
27、isfied Job Stress % Highly Stressful & Fairly Stressful Industry 2020 Median Pay % Growth YOY2020 % Change YOY2020 % Change YOY Accommodation & Food Services $33,500-3.6%61%-0.1%65%-1.0% Agencies & Consultancies$59,7001.9%69%0.2%63%0.5% Architecture & Engineering$68,3001.8%72%-0.1%53%0.3% Arts, Ente
28、rtainment, & Recreation $46,6001.5%71%1.9%58%-1.0% Construction$55,1000.1%71%0.3%61%-1.1% Education$51,8001.6%73%0.3%58%1.2% Energy$71,9000.1%73%1.7%56%-0.3% Finance & Insurance$67,0001.9%71%1.2%57%0.7% Health Care$49,7002.6%70%-0.3%70%1.0% Hospitals$57,5002.1%70%0.3%72%1.1% Manufacturing$62,5001.3%
29、68%0.5%59%0.2% Nonprofits$48,3002.7%76%-0.6%61%0.6% Pharmaceuticals$73,1001.3%71%2.2%61%-0.1% Retail$41,500-1.4%63%1.2%60%0.0% Technology$82,9002.8%72%2.0%53%1.0% Transportation$54,3000.2%68%-0.3%60%0.0% *Conditional formatting is applied vertically for each column to indicate comparison against oth
30、er occupations where leaning red is more unfavorable and leaning green is more favorable. 7 ANALYSIS ON INDUSTRIES Accommodation & Food Services Accommodation and food services (hotels and restaurants) have suffered the most of any industry in the 2020 COVID-19 economy. This industry shows the lowes
31、t wages, the lowest wage growth (-3.6 percent) and lowest job satisfaction of any industry. The danger for this industry is that wages may remain low even after the economy recovers and that workers will suffer a significant negative impact to their lifetime earnings. This has been the case since th
32、e Great Recession of 2008 and COVID-19 has only compounded wage stagnation for this industry. Job stress is also medium high for this industry though it has improved a little in 2020. Agencies & Consultancies Agencies and consultancies, which includes a variety of professional business services, are
33、 in the middle across the board when compared to other industries. Median pay is on the high end with average wage growth of 1.9 percent. Employees are on the medium low end of the spectrum when it comes to job satisfaction, which has increased since last year, but only by a little. The same is true
34、 of job stress for this industry. Architecture and Engineering This industry has relatively high pay compared to other industries with wage growth of 1.8 percent in 2020, indicating that wage increases of around 2 percent would be in keeping with the average growth. Job satisfaction for this industr
35、y is relatively high and job stress is reported to be very low, making architecture and engineering an excellent career field overall. Arts, Entertainment and Recreation The arts, entertainment and recreation industry pays at the lower end of the spectrum with wage growth at a middling 1.5 percent c
36、ompared to other industries this year. Job satisfaction for this industry is relatively medium high and has actually increased substantially year over year compared to other industries. Job stress is also relatively low and has gotten lower in 2020, possibly due to the ability to work from home, whi
37、ch may suit employees in this industry. Construction Wages in construction are on the medium low end of the spectrum for the industries we studied with tepid, almost nonexistent wage growth of 0.1 percent in 2020. However, job satisfaction in this industry is medium high and seems to have been that
38、way last year as well. Job stress in also in the middle but has gone down substantially in 2020. In fact, job stress has decreased the most for construction out of all the industries studied. Education The education industry pays on the lower end with middling wage growth of 1.6 percent in 2020 comp
39、ared to other industries in the spectrum. Despite this, job satisfaction is high in the education industry in 2020, which has changed little year since last year. Job stress is currently on the lower end compared to other industries, but has risen substantially in 2020, likely due to the unpreparedn
40、ess of education centers to function remotely as well as general stressors related to the pandemic. 8 Energy The energy industry pays highly compared to other industries. However, it shows almost nonexistent wage growth in 2020 of 0.1 percent. Job satisfaction, however, is high and has also risen by
41、 a relatively high degree in 2020 compared to other industries. Job stress is also relatively low and has decreased in 2020. Despite the tepid wage growth, this is one of the most positive industries in 2020. Finance & Insurance The finance and insurance industry pays on the higher end of the spectr
42、um for wages with matching wage growth of 1.9 percent in 2020. Organizations planning pay increases for 2021 should raise wages by at least two percent to keep up with inflation. Job satisfaction in the finance and insurance industry is generally high with improved satisfaction in 2020 of 1.2 percen
43、t. Job stress is on the lower end of the spectrum compared to other industries, but on the higher end of the middle for how much it has increased since 2019. Healthcare The healthcare industry sees wages in the middle to low end of the spectrum but some of the highest wage growth in 2020. Healthcare
44、 organizations that dont raise wages by at least 2.6 percent across the board going into 2021 may find that they pay below market. Healthcare as an industry weights in the middle when it comes to job satisfaction (it is higher for healthcare practitioners specifically) with a decrease since last yea
45、r. Job stress also rates among the highest across industries with one of the highest increases year over year. Hospitals Hospitals are a subset of the healthcare industry. Wages for hospitals are a bit higher than the healthcare industry holistically but are in the middle for all industries studies.
46、 Wage growth for hospitals was one of the strongest in 2020 at 2.1 percent, which is a bit lower than healthcare overall but on the upper end of all the industries studied. Job satisfaction for hospitals is in the middle just like healthcare. Hospitals rank as the most stressful industry in 2020 wit
47、h the second to highest increase in stress, just behind education. Manufacturing Manufacturing is medium high on the industry spectrum when it comes to median pay. Wage growth was in the middle at a humbling 1.3 percent for 2020. Job satisfaction is on the medium low end of the spectrum but has impr
48、oved slightly since 2019. Job stress is relatively low compared to other industries and hasnt changed much year over year. Nonprofits Nonprofits pay on the lower end of the spectrum, but wage growth in 2020 is on the high end at 2.7 percent. Job satisfaction is the highest for nonprofits but has dec
49、reased in 2020 compared to 2019, likely due to additional stress imposed by the pandemic. Job stress is in the middle compared to all industries but has gone up since last year. 9 Pharmaceuticals Median pay for the pharmaceutical industry is high compared to other industries. Wage growth is average compared to other industries in 2020 at 1.3 percent. Job satisfaction and job