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1、 1Compensation Best Practices ReportData and insights to support best-in-class compensation management in a year of Table of 2IntroductionHighlightsReadiness for the futureBusiness performanceHR prioritiesCompensation prioritiesCompensation teamCompensation technologyCompensation maturityArtificial

2、intelligenceMetrics and reportingSpotlight on the labor marketLabor turnoverTensionCost reductionsOutside laborFair payPay increasesJob descriptionsSalary dataCompensation strategyFormal approachComponentsMarket strategyPay structuresJob architectureCompensable factorsShift differentialsPromotionsRe

3、mote workSkills-based hiringDEI and pay equityPay transparencyPay communicationsVariable pay and benefitsMethodologyAbout Payscale3455689111214182021222324252636374242444547484951535660626570727682IntroductionThe 2025 Compensation Best Practices survey gathered 3,595 responses from NovemberDecember

4、2024 with a completion rate of 55 percent.A breakdown by company size,industry,and other firmographics is available in the methodology at the end of this 3If 2024 was the Year of Retention,in which a precarious economy presided over a stagnant labor market,2025 might be labeled the Year of Contentio

5、n,in which the labor market is poised to heat up in a year of deepening political divide and widening wealth inequality,leading to a potential wave of resignations and a scramble to adjust compensation to retain top talent.In addition,organizations are pulling back on pay equity analysis(57 percent)

6、compared to previous years(62 percent),even if they ostensibly havent abandoned diversity,equity,and inclusion(DEI)programs.We are also seeing a reduction in organizations publishing pay ranges regardless of whether it is required by law(56 percent compared to 60 percent last year),even though more

7、organizations say they would like to be more transparent.With the possibility of a recession dwindling and hiring starting to pick up,we may be looking at resignations as employees seek to depart frustrating work environments for better opportunities,whether because of return-to-office mandates,insu

8、fficient benefits,a clash of values,or perceptions of unfair pay.Fortunately,organizations are more prepared to provide differentiating rewards.According to our survey,25 percent of organizations say they exceeded their revenue goals in 2024,which is an improvement from the downward trend last year.

9、In addition,44 percent of survey participants feel that compensation is their greatest challenge in 2025,which is the largest grouping and a continuation of a trend seen over the last two years.As a result,more organizations are hiring compensation professionals(70 percent),have a compensation strat

10、egy(61 percent),and are purchasing purpose-built compensation technology(30 percent)than ever before.With more organizations ready to embrace compensation maturity but a decline in fair and transparent pay,2025 might necessitate a back-to-basics approach to compensation management.Why do we say this

11、?Well,during the last year,tension mounted between employers and the workforce.While employees feel secure in their jobs,they are less sanguine about their pay.Pay transparency legislation has continued to expand in the United States,leading to more visibility of what constitutes competitive pay for

12、 employees and job seekers.At the same time,some organizations have pulled back on compensation spend,including reducing pay increases(18 percent),lowering salary offers(14 percent),and hiring less experienced talent(15 percent),to take advantage of an employer-friendly labor market.Organizations ar

13、e also reducing pay increases by 0.3 percent on average(3.5 percent planned for 2025 compared to 3.8 percent given in 2024).44%33%50%8%313%66%31%59%81%61%70%61%41%59%65%of orgs say compensation is more challenging than previous years.ReadinessReadinessFair paySalary dataSkills-based hiringPay equity

14、Pay equityPay communicationsTotal rewardsJob architectureMarket pricingCompensation strategyVariable payPay increasesPay increasesJob descriptionsPay transparencyReadinessFair payLabor marketRemote workReadinessReadinessPay increasesTotal rewardsof orgs have a mature approach to compensation.of orgs

15、 are moving toward skills-based hiring.is the median base pay increase given for promotions.is the median number of salary data sources used by organizations,4 for larger companies.was the average voluntary turnover for 2024;the median was 10%.of orgs believe equity should remain a central pillar of

16、 DEI.of orgs say perception of unfair pay is why they are losing talent.of orgs have a job architecture.of orgs offer variable pay.of orgs have a formal compensation strategy.of orgs have at least one dedicated compensation professional.of orgs provide a total rewards statement to employees.of orgs

17、mandated return-to-office and 39%believe they are losing talent over it.of orgs train managers on pay communications.are confident in their total rewards strategy.3.5%47%56%63%60%64%70%57%30%is the base pay increase orgs plan to give in 2025.of orgs are experiencing increased tension between fair pa

18、y and optimizing spend on comp.of orgs publish pay ranges in job ads regardless of whether it is required by law.of orgs are confident in their market pricing to attract and retain talent.of orgs are confident their pay increases are competitive.of orgs have a centralized system for creating and mai

19、ntaining job descriptions.of orgs proactively address severely underpaid employees as part of regular practices.of orgs say pay equity analysis is a planned or current initiative for their organization.of orgs use purpose-built compensation technology.KeyNumber up from 2024Number down from 2024Highl

20、ightsFor the past 16 years,Payscales Compensation Best Practices Survey has collected data from compensation professionals,HR leaders,business owners,and others who make compensation decisions for their organizations.By participating,youll receive an early copy of the results.Sign up to receive noti

21、fications to participate next year when the survey opens.Participate in next years Compensation Best Practices Survey.Sign 4*Not all survey questions were asked last year to provide a 5We will not meetrevenue goalsUnsureOther2023We will meetrevenue goals38%41%21%25%17%14%16%13%7%7%1%0%We will exceed

22、revenue goalsWe do not haverevenue goals2024Top performers*Non-top performersReadinessfor the futureBusiness performanceWhile the labor market has cooled,with reduced hiring and turnover,the U.S.economy did not enter a recession despite warnings over the last few years.Business performance improved

23、between 2023 and 2024,with more organizations saying they met or exceeded revenue goals compared to last year,which should prepare them well for the year ahead.This section of the report focuses on the preparedness of organizations to tackle compensation best practices,including achievement of reven

24、ue goals,priorities and challenges,compensation resources,maturity to manage compensation,sentiment around AI,and metrics and reporting.Will your company meet its overall revenue goals for the year?Business performanceHR prioritiesCompensation prioritiesCompensation teamCompensation technologyCompen

25、sation maturityArtificial intelligenceMetrics and reportingJump to sectionHR prioritiesYear over year,we ask survey participants to tell us which HR activities they expect will be more challenging,less challenging,or unchanged compared to previous years.Before last year,recruiting,retention,and enga

26、gement topped the list,but last year and continuing this year,compensation reigns as the most challenging HR activity.This is due to increasing focus on fair pay.Compensation is the biggest challenge facing organizations in both 2024(50 percent)and 2025(44 percent),despite having dropped a few perce

27、ntage points.However,compensation is a lower-priority investment(36 percent)compared to retention(38 percent)in 2025(see next page).In some ways,2024 may be thought of as the year of retention in which organizations held back on hiring to concentrate on the workforce they have.This is continuing int

28、o at least the beginning of 2025.Note that a new category added for 2025 is exploring or defining AI strategy,which 36 percent of organizations say is more challenging and 29 percent say will be a higher-priority investment this year compared to last year.What will be the greatest challenges for HR

29、in your organization in 2025 compared to previous years? 60%10%20%30%40%50%2024 more challenging2025 more challenging50%44%42%40%44%39%37%39%36%29%N/A35%30%33%32%31%29%29%29%28%23%28%27%28%26%27%26%25%19%21%20%19%17%19%15%18%CompensationRetentionRecruitingEngagementExploring AI ordefining our AI str

30、ategyBenefitsUpskilling,reskilling,orskills-based workforceCareer pathingFostering company cultureModernizing HR softwareEmployee and labor relationsPerformance managementLearning and developmentWorkforce planningWorkplace environmentJob description managementWorkplace policiesESG(environmental,soci

31、al,and governance) 7How will HR prioritize investment in these areas of your organization in 2025 compared to previous years?0%10%5%25%20%15%30%35%40%2024 higher-priority investment area2025 higher-priority investment area37%38%35%37%34%36%35%34%33%27%31%24%30%29%25%29%27%28%28%28%25%27%19%24%18%23%

32、17%21%17%20%14%18%13%18%33%CompensationRetentionRecruitingEngagementExploring AI or defining our AI strategyBenefitsUpskilling,reskilling,or skills-based workforceCareer pathingFostering company cultureModernizing HR softwareEmployee and labor relationsPerformance managementLearning and developmentW

33、orkforce planningWorkplace environmentJob description managementWorkplace policiesESG(environmental,social,and governance)N/A 8Weighted priority of compensation activities.Rate the importance of the following compensation activities at your organization in 2025 compared to 2024 on a scale of 1(low i

34、mportance)to 5(high importance).Compensation prioritiesWe also asked survey respondents to rank compensation activities on a scale of one(low importance)to five(high importance)and weight-ranked them to determine the most important activities to organizations in aggregate.Our analysis shows that the

35、 most important compensation activities in 2025 are increasing pay transparency,having confidence in market pricing,and conducting pay equity analysis.These are central activities to compensation management to attract and retain talent in an era where transparency,equity,and fairness are increasingl

36、y desired despite growing contention around DEI and pullback on pay equity analysis compared to last year.Also at the top are the processes that are needed to get to fair,equitable,and transparent pay.That includes pay increases,formal pay structures,compensation strategy,and compensation philosophy

37、.Increasing pay transparencyHaving confidence in market pricingConducting pay equity analysisCreating or updating a compensation strategyEstablishing or updating formal pay structuresDetermining pay increasesCreating or updating a compensation philosophySelecting salary data sourcesCreating a job ar

38、chitecture or job levelingEstablishing an approach to employee pay progressionManaging performance-based payEstablishing or managing pay communicationsParticipating in market surveysManaging pay compressionUtilizing compensation technologyUtilizing total rewards statementsReporting on pay practices

39、to leadershipCreating differentiating total rewardsReducing compensation spendMaking the shift to skills-based payLeveraging AI for compensationEstablishing or updating global pay strategyGrowing the compensation 9Does your organization have a person or team solely dedicated to the function of compe

40、nsation?Compensation teamMost organizations(70 percent)say they have at least one compensation professional in-house,which is nearly a 10 percent jump up from previous years,demonstrating how important the compensation function has become.Larger organizations are even more likely to have a dedicated

41、 compensation function,hitting over 90 percent for organizations with over 5,000 employees,reflecting the need for organizations of all sizes to advance their compensation maturity.No,we have no dedicated compensation professionals in our organizationYes,we have one dedicated compensation profession

42、alYes,we have multiple people dedicated to the function of compensationYes,we have more than 10 people dedicated to the function of compensationWe outsource the compensation function to a consultant or consultancyUnsure2024202535%30%34%6%7%4%2%3%2%26%23%29%Does your organization have a person or tea

43、m solely dedicated to the function of compensation? 10199 employees100749 employees7504,999 employees5,0009,999 employees10,00049,999 employees50,000 or more employeesWe outsource thecompensation function to aconsultant or consultancyUnsure69%No,we have no dedicated compensation professionalsin our

44、organizationYes,we have one dedicatedcompensation professionalYes,we have multiplepeople dedicated to thefunction of compensationYes,we have more than 10people dedicated to thefunction of compensation48%32%28%34%31%22%11%17%16%25%50%60%59%35%3%3%3%3%3%2%2%2%2%2%2%1%0%4%7%9%23%41%8%6%5%3%Compensation

45、 technologyWe asked our survey participants what technology they use to manage compensation,with the option to select multiple answers.Compensation software can assist organizations with compensation management functions ranging from market pricing to determining pay increases and reporting.The use

46、of compensation technology is up from last year.Almost a third of organizations(30 percent)use purpose-built compensation technology like Payscale up 5 percent from 2024 which is a significant jump and indicative of the growing importance of leveraging modern technology for increased confidence in p

47、ay decisions.However,a strong majority of organizations(58 percent)continue to use Excel.What technology does your organization use to manage compensation today?(Multiple answer choices allowed)Get a demoRequest a demoLearn more about how purpose-built compensation management technology from Payscal

48、e builds confidence in pay decisions.ExcelCompensationmodule within HRISPurpose-builtcompensationtechnology“Homegrown”orproprietary technologyexclusively used by ourorganizationOur compensationconsultant usestechnology on ourbehalfOur organization doesnot use any technologyto managecompensation toda

49、y2024202558%58%36%42%25%30%14%17%5%11%12%6% 11AdvancingAs neededEmergingDeveloping17%20%30%23%Optimizing10%We mainly worry about compensation at time of hire,havent begun standardized compensation processes,and rely exclusively on free data sourcesWe have begun developing a few key compensation proc

50、esses and consistent approaches when using salary data for market pricingWe have standardized our approach to accessing and managing salary data and are working on creating a compensation strategy and processes with supportive tools/technology around compensation planning and managementWe have a rel

51、iable,standardized approach to managing salary data sources that is strategically tailored to our organization,a strong compensation strategy,and processes and tools that help us manage payWe are confident in our data sources,compensation strategy,and structures,and are in position to continuously o

52、ptimize our approach and be the standard for compensation best 12Compensation maturityThe Payscale Compensation Maturity Model is a framework designed to help organizations evaluate and improve their compensation strategy,practices,and policies over time.It provides a roadmap for companies to progre

53、ss from basic to advanced stages of compensation management,aligning pay practices with business goals and enhancing employee satisfaction and retention.In 2025,Payscale returns to a five-step compensation maturity model.According to this model,a third of organizations are mature(Advancing or Optimi

54、zing)while two-thirds are still maturing(as needed or emerging).Mature organizations are more likely to be confident that their pay is competitive,more likely to proactively address underpaid employees and avoid pay compression,and more likely to have pay transparency and pay communications to educa

55、te managers and employees on pay practices,among other benefits.While compensation maturity is more prevalent in larger organizations,organizations of all sizes are found in the Advancing and Optimizing stages.Which of the following best describes your organizations current compensation management m

56、aturity level?199 employees100749 employees7504,999 employees5,0009,999 employees10,00049,999 employees50,000 or more employees7%7%11%14%20%27% 13Compensation technology is correlated with maturityWe analyzed the relationship between compensation technology type and compensation maturity and found a

57、 correlation between the use of software and rising maturity levels.The strongest link was seen between purpose-built compensation software like Payscale and the Advancing and the Optimizing stages of the compensation maturity model,which was also true last year.Meanwhile,not using compensation tech

58、nology prohibits progress in compensation maturity.0%10%20%30%40%50%As neededEmergingDevelopingAdvancingOptimizingExcelHomegrownHRISPurpose-builtConsultantNoneCompensation technology vs.maturityWhat technology does your organization use to manage compensation today?(Multiple answer choices allowed)1

59、3%19%34%25%9%23%19%23%23%12%10%11%18%19%34%32%29%10%26%11%8%49%13%21%32%10%33%14%11%9%As neededEmergingDevelopingAdvancingOptimizingExcelCompensation module within HRISOur compensation consultant uses technology on our behalf“Homegrown”or proprietary technology exclusively used by our organizationPu

60、rpose-built compensation technologyOur organization does not use any technology to manage compensation todayGet a demoRequest a demoLearn more about how purpose-built compensation management technology from Payscale helps accelerate compensation 14Artificial intelligenceIn 2023,generative AI explode

61、d into public discourse.In 2024,the use of AI in HR went mainstream.In 2025,there have been innovations,including new offerings from Payscale.SentimentWe asked organizations about their sentiment toward AI last year and learned that 49 percent were optimistic about its uses generally,but only 7 perc

62、ent were totally on board with its application in compensation management,with another 31 percent being cautiously optimistic,and 12 percent against it.In 2025,we asked how organizations feel toward using generative AI specifically for market pricing,pay equity,legislative compliance,and documentati

63、on and communications,which was largely positive with roughly the same distributions.About a fifth of organizations are totally on board and just under half are cautiously optimistic.Totally on boardAgainst itCautiously optimisticUndecided8%51%20%21%10%48%19%24%10%45%21%24%11%46%22%21%.for policy do

64、cumentation,education,or communications.for legislative compliance.for recommendingpay increases.for market pricingWhat best describes your sentiment around leveraging AI/machine learning.52%20%18%10%No,and wedont plan toin the futureNo,but we areconsidering thisin the futureYes,we aredoing this now

65、UnsureReplacing labor with AIWe also asked whether organizations have intention to replace workers with automation/AI now or in the future.Most organizations responded that they are not doing this and do not plan to(52 percent).However,18 percent said they are actively doing this now and another 20

66、percent are considering it.Organizations that say they are replacing workers are concentrated the highest in Business Services and Construction.Nonprofits are the least likely to say they are replacing workers with automation/AI(see next page).Is your organization replacing workers with automation/A

67、I? 16Is your organization replacing workers with automation/AI?Business Services4%44%19%33%5%43%22%30%13%41%23%23%13%47%18%23%9%44%25%22%14%48%16%22%5%47%27%21%11%49%21%20%11%58%14%17%8%52%23%16%9%49%28%14%12%51%23%13%7%59%22%13%15%58%17%10%8%57%25%10%11%52%28%9%15%64%17%4%7%76%14%3%Engineering&Scie

68、nceAgencies&ConsultanciesArts,Entertainment,&RecreationConstructionEnergy&UtilitiesFinance&InsuranceReal Estate,Rental,&LeasingTechnology(including software)Retail&Customer ServiceGovernmentManufacturingPharmaceutical&BiotechnologyTelecommunicationsTransportation&WarehousingOtherEducationFood,Bevera

69、ge,&HospitalityHealthcare&Social AssistanceNonprofitN/AN/AYes,we are doing this nowNo,but we are considering this in the futureNo,and we dont plan to in the futureUnsureGenerative AI for job descriptions We also asked organizations if they are leveraging generative AI to write job descriptions.In ad

70、dition to assistance in drafting,reviewing,and revising,AI-powered technology provides a way to categorize and manage job descriptions to understand talent requirements and have confidence that the pay is right.According to our survey,only a minority of organizations are currently leveraging generat

71、ive AI to write job descriptions.Organizations with a more mature approach to compensation management are more likely to say they still use job description management software(32 percent),which may or may not be coupled with generative AI.Are you leveraging generative AI(e.g.,ChatGPT or similar)to w

72、rite job descriptions?Harness the power of AI to boost your productivity using advanced algorithms vetted with data science.Introducing:AI Match Suggestions with Payfactors AI Match Suggestions with MarketPay Peer Auto-Match AI-Generated Job SummariesLearn morePayscale is at the forefront of compens

73、ation AI OverallMatureImmatureYes,and its replacing the need for job description management softwareYes,but we still use job description management softwareNo,we are not doing this yetNo,and we dont plan toUnsure21%26%33%13%18%32%30%12%14%30%23%26%6%8%8% 18Metrics and reporting Metrics and reporting

74、 help organizations track the effectiveness of HR and compensation programs.However,not all organizations do this.HR metricsWhile most organizations track turnover(66 percent),that is still only two-thirds of organizations.This increases to 71 percent for organizations with 50,000 or more employees.

75、Top-performing organizations that exceeded revenue goals are more likely to measure high-performer turnover rate(32 percent)and time to promotion(26 percent)as well as performance(44 percent)and cost of HR per employee(15 percent).High-performer turnover rate can be more useful than total or volunta

76、ry turnover in organizations where positions are prone to high turnover and where turnover is sometimes even productive.Time to promotion is an effective way of measuring career growth within an organization,especially for employees you really want to retain.Which of the following HR metrics does yo

77、ur organization track?(Multiple answer choices allowed.)0%10%20%30%40%50%60%70%80%Total turnover rateVoluntary turnover ratePerformanceLength of tenureRetention rateTime to hireEngagementHigh-performer turnover rateProductivityOffer acceptance rateCost per hireTime to promotionRatio of HR to employe

78、esCost of HR per employeeROI of HR softwareUnsureOther(please specify)We do not track HR metricsOverallTop performers66%59%54%46%48%44%46%42%36%37%34%29%27%27%25%32%23%27%22%22%19%20%19%26%14%16%10%15%8%11%5%3%0%0%4%2%Compensation metrics Even fewer organizations track compensation metrics than HR m

79、etrics,with average market percentile being the most popular at 41 percent,followed by compa-ratio and annual salary range adjustments.Most compensation metrics are used to determine whether employee pay is fair and to make the case to leadership that an employee deserves a pay increase for retentio

80、n and to avoid needing to replace the employee due to turnover,which often costs more.Notably,CEO to average worker pay ratio was one of the least-tracked metrics next to uncontrolled pay gaps.These metrics are interesting as a matter of social responsibility,even if they are not shared outside the

81、organization,but can be powerful indicators of an ethical corporation when made transparent.Which of the following compensation metrics/reports does your organization track?(Multiple answer choices allowed.)0%10%20%30%40%50%Average market percentileCompa-ratioAnnual salary range adjustmentsRange spr

82、eadPay range penetrationPay compressionProjected spend on pay increasesPercent over/under rangeSalary differentialPerformance-to-pay relationshipEstimated cost to replace talentControlled pay gapRetention-to-pay relationshipCEO to average worker pay ratioUncontrolled pay gapUnsureOtherWe do not trac

83、k compensation metrics41%38%38%31%30%27%26%26%25%19%15%11%10%8%6%5%0%9% 19Spotlight on the labor marketLabor marketTensionCost reductionsOutside laborFair payJump to 20In recent years,the U.S.job market has undergone a dramatic transformation,shifting from record levels of employee turnover to relat

84、ive stagnation with historically low hires and separations.While inflation came down and a recession was avoided,both hiring and separations decreased in what is being called the Great Stay.Sluggish labor market dynamics created a challenging experience for recruiters and job seekers,especially for

85、knowledge worker positions.By the end of 2024,the labor market was starting to see glimmers of movement as fears of an impending recession lifted and interest rates were cut.After a year of pent-up frustration,there is potential for a rise in resignations.However,if interest rates rise,layoffs incre

86、ase,or the economy slows,the labor market could continue to 21Labor turnoverAccording to our survey,the average total turnover rate in 2022 and 2023 was 26 percent,which dropped to 18 percent looking back at last year.The average voluntary turnover decreased from 26 percent in 2022 to 21 percent in

87、2023 and dropped steeply to 13 percent looking back at 2024.To control for outliers,we also looked at the median turnover rate this year,which was 15 percent for total turnover and 10 percent for voluntary turnover even lower than the average.While turnover rates vary according to participants and m

88、ethodologies,declining turnover is corroborated by other survey providers,such as Mercer.These numbers are low at both the average and the median,validating public perception of a frustrating job market that has significantly cooled,giving employers considerable control over job seekers.Median emplo

89、yee turnover Average employee turnover 15%10%What was your organizations employee turnover rate in 2024?Total median Voluntary median turnover*Indicates the report year,but the question asks about turnover in the previous year 2023 report for 2024*2025 report for 2024*2024 report for 2023*Total aver

90、age employee turnover rateVoluntary average employee turnover rate26%26%26%18%21%13%40%No47%Yes14%UnsureTensionBetween the precarious economy,increased employer power in the labor market,and a heated political climate,organizations have been grappling with increased tensions.This is especially true

91、when it comes to compensation,where there is expectation to reduce compensation costs while economic conditions are uncertain,and when the labor market favors employers.Overall,47 percent of organizations say they are experiencing increased tension between ensuring fair pay and optimizing spend on c

92、ompensation.This increases to 58 percent for organizations that did not achieve their revenue goals in 2024(non-top performers).It is also higher for certain industries,such as Agencies&Consultancies(56 percent),Education(58 percent),and Healthcare&Social Assistance(54 percent).Is your organization

93、experiencing increased tension between ensuring fair pay for employees and optimizing spend on compensation in current market conditions? 22Reducing pay increasesHiring less experienced talentUnsureReducing salary offers to new hiresTargeting a lower percentileSlotting jobs at lower levelsReducing b

94、enefitsLowering pay for current employeesCanceling pay increasesOtherNone of the above18%15%15%14%12%10%9%7%6%4%39% 23Cost reductionsGiven the unique labor market conditions,we asked whether organizations have adopted a strategy to decrease spend in relation to compensation.While most organizations

95、have not adopted cost-reduction strategies,18 percent say they have reduced pay increases,15 percent say they are hiring less experienced talent,and 14 percent say they are reducing salary offers to new hires.It should be noted that the latter strategy can result in pay compression when market dynam

96、ics change.This strategy is more likely in organizations with immature compensation management practices(20 percent).In response to economic or labor market conditions,is there a strategy at your organization to decrease spend through the following?(Multiple answer choices allowed.) 24Is your organi

97、zation utilizing outside labor more than in previous years to reduce payroll costs?Which are you utilizing more than in previous years?(Multiple answer choices allowed.)Outside laborOne strategy used to save on costs related to payroll is to lean more on outside labor.According to our survey,a quart

98、er of organizations(25 percent)say they are utilizing outside labor more than previous years to reduce costs,with the most popular option being contractors or consultants.It should be noted that the use of outside labor,especially contractors,can be fraught with risk when it comes to fair pay.Organi

99、zations need to be careful to comply with labor laws and be mindful of pay transparency and how outside labor is paid compared to internal team members for the same work.25%65%10%YesNoUnsure60%51%35%23%12%2%2%Contractorsor consultantsAgencies(project-basedor managed services)FreelancersGig workersFr

100、actional leadersOtherNone of the 2520242025Yes,perception of unfair pay is a leading reason why were losing talentNo,perception of unfair pay is not a leading reason why were losing talentWe are not experiencing talent lossUnsure21%31%46%37%21%22%13%10%Which of the following best describes how your

101、organization addresses severely underpaid employees?Do you think you are losing talent due to employee perceptions of unfair pay?Fair payOne of the primary reasons organizations lose talent is unfair pay practices.This is especially true in competitive labor markets where job seekers have the upper

102、hand.While we are not in this type of labor market currently,there is discontent over fair pay in public discourse.With pay transparency on the rise,employees have more access to pay data than ever before.When the market turns around,organizations that are not being proactive about fair pay may lose

103、 talent to competitors.Fortunately,according to our survey,70 percent of organizations address instances of severely underpaid employees proactively.This is an increase over last year(64 percent),demonstrating that organizations are investing more in compensation management best practices to keep up

104、 with labor market demands and employee expectations.However,22 percent of organizations still only address severely underpaid employees if the employee or their manager asks.When it comes to actual talent loss,nearly a third of organizations(31 percent)say that perception of unfair pay is a leading

105、 reason why they are losing talent,which has increased compared to last year(21 percent).Losing talent due to unfair pay practices is more common for organizations with immature compensation management maturity(39 percent).Proactively,as part ofour regular pay processesReactively,only if an employee

106、or their manager asksUnsure2024202564%70%9%8%22%27%Unsure2%13%2024 actual2025 plannedPay increasesIn 2024,we saw pay increases come down from the Great Resignation but remain elevated compared to the time before the COVID-19 pandemic.In 2024,most employers are predicting lower pay increases in align

107、ment with inflation coming down and the labor market cooling at least for the time being.More organizations are planning to give pay increases in 2025(81 percent)than planned to do so in our 2023 survey planning for 2024(79 percent).While 13 percent are yet undecided,its normal for the percentage of

108、 organizations giving pay increases to end up in the mid-80s.Pay increases by segmentFactorsCommunicationsTimelinessFrequencyConfidencePay compressionRed-circled employeesJump to sectionGet notified to participate in Payscales mid-year 20242025 Salary Budget Survey.Sign up nowWhat do you expect will

109、 be the percent base-pay increase given to employees in your organization?Median percent base-pay increase Does your organization plan to give base-pay increases in 2025?3.8%2024 actual3.5%2025 plannedYes86%81%2024 actual2025 plannedNo12%5%2024 actual2025 27Pay increases by segment Pay increases are

110、 higher for smaller organizations than larger ones,especially last year.Planned pay increases vary by industry,hitting 5 percent for Business Services,4.5 percent for the Engineering&Science sector,and 4 percent for Agencies&Consultancies;Energy&Utilities;Arts,Entertainment,&Recreation;Construction;

111、Finance&Insurance;Real Estate,Rental,&Leasing;and Technology.Median base-pay increases199employees100749employees7504,999employees5,0009,999employees10,00049,999employees50,000 or moreemployees2025 planned2024 actual3.8%4%3.8%4%3.6%3.8%3.5%3.5%3.5%3.5%3.5%3.5%0%1%2%3%4%5%2024 actual2025 plannedBusin

112、ess Services?Engineering&Science?5%5%5%4%4%4%4%4%4%4%4%4%4%3%3.2%3.4%3.5%3.5%3.5%3.5%3.5%3.5%3.5%3.5%3.5%3.6%3.9%3.9%3.7%3.5%3.5%3.8%3.8%3%3%3%3%4%4%4.5%Agencies&Consultancies?Arts,Entertainment,&Recreation?Construction?Energy&Utilities?Finance&Insurance?Real Estate,Rental,&Leasing?Technology(includ

113、ing software)?Retail&Customer Service?Government?Manufacturing?Pharmaceutical&Biotechnology?Telecommunications?Transportation&Warehousing?Other?Education?Food,Beverage,&Hospitality?Healthcare&Social Assistance?Nonprofit? 28Median base-pay increasesWhat was the percent base-pay increase given to empl

114、oyees? 29FactorsMultiple factors go into base pay increases,but not every organization considers the same ones.The most popular in 2025 is merit/performance(75 percent),followed by market adjustments(51 percent)and inflation(45 percent).Between 2024 and 2025,more organizations are considering market

115、 adjustments,pay compression,internal pay equity,tenure,and competitive skills,but only by a few percentage points.Which of the following will be factored into base-pay increases at your organization in 2025?(Multiple answer choices allowed.)Merit/performanceMarket adjustment/cost of laborInflation/

116、cost of livingInternal pay equityPay compressionCompetitive skillsMinimum wage increasesTenureEducation/certificationChange in locationOtherNone of the above0%10%20%30%40%50%60%70%80%2024202574%75%48%51%45%45%31%34%20%22%20%22%18%17%14%16%12%13%7%7%3%1%0%2% 30When communicating base-pay increases to

117、 employees,do you line-item the total increase into distinct increase types?When will 2025 base-pay increases(adjustments for the 2024 merit year)become effective for employees in your organization?Communications Organizations that consider multiple factors in base pay increases may or may not commu

118、nicate it to employees.According to our survey,only 42 percent of organizations line-item each pay increase type.This is an increase from 33 percent in 2024,showing that more organizations are taking pay communications into consideration when it comes to adoption of more transparent pay practices.Ti

119、meliness Pay increases typically happen at the beginning of the fiscal year to reward performance in the previous year,but the timing for when employees see the difference in their paycheck can vary considerably.According to our survey,most employees receive their pay increase in January(32 percent)

120、,with 64 percent seeing pay increases in the first quarter of the calendar year.While the percentage varies by industry,the only industry with a significantly different process is Education,which gives more pay increases in the summer months in alignment with the academic calendar.UnsureYes,we line-

121、item each pay increase type33%42%20242025No,we combine them into one increase59%52%202420257%6%2024202524-NovPercent of organizations24-Dec25-Jan25-Feb25-Mar25-Apr25-May25-Jun25-Jul25-Aug25-Sep25-Oct25-Nov25-DecNot until 20265%8%32%13%19%21%8%8%13%6%6%7%5%4%0%Frequency Most organizations give pay in

122、creases annually(73 percent),but some organizations give pay increases more frequently.Frequent pay increases were a more popular strategy during the Great Resignation when the job market was hot and organizations didnt want to lose talent by making employees wait over a year for a raise;however,thi

123、s trend has cooled over the last few years.How often does your organization formally give pay increases?Continuously/rolling cyclesQuarterlyAnnuallyTwice annuallyAd hocUnsure2024202320253%4%4%5%69%74%11%9%3%4%4%10%7%9%7%73%4%2% 31Confidence Most organizations(60 percent)are either fairly confident o

124、r very confident that their pay increases are competitive for retaining and engaging talent.This will be especially important if the labor market picks up in 2025.Confidence rises to 80 percent for organizations that are either Advancing or Optimizing according to Payscales Compensation Maturity Mod

125、el.It also varies considerably by industry(see next page).How confident are you that your organizations pay increases are competitive for retaining and engaging talent? 33Fairly confident or very confident that pay increases are competitiveHow confident are you that your organizations pay increases

126、are competitive for retaining and engaging talent?Business ServicesEngineering&ScienceAgencies&ConsultanciesArts,Entertainment,&RecreationConstructionEnergy&UtilitiesFinance&InsuranceReal Estate,Rental,&LeasingTechnology(including software)Retail&Customer ServiceGovernmentManufacturingPharmaceutical

127、&BiotechnologyTelecommunicationsTransportation&WarehousingOtherEducationFood,Beverage,&HospitalityHealthcare&Social AssistanceNonprofit74%72%71%69%67%65%64%62%61%58%57%56%54%54%53%51%50%48%47%47%Pay compression Pay compression occurs when the pay of one or more employees is very close to the pay of

128、more experienced employees with the same job.Pay compression is common in competitive labor markets when new talent is hired at higher salaries than more tenured talent,especially for highly skilled talent in certain sectors.It can also occur when minimum wage is increased,especially for organizatio

129、ns with a high percentage of low-wage workers.In 2024,pay compression was less of a problem than during the Great Resignation,but 27 percent of organizations still say it is a big concern.This percentage drops to 21 percent for more mature organizations.Is pay compression a concern for your organiza

130、tion going into 2025?27%Yes,it is still a big concern 32%Yes,but less so than in previous years 30%No12%U 34Less than 5%difference in base pay5-10%difference in base pay11-15%difference in base payMore than 15%difference in base payWe dont target a differenceUnsureOther6%33%18%7%21%13%2%Addressing p

131、ay compression Only a minority of organizations(39 percent)do anything to address pay compression,with 15 percent saying they avoid pay compression by proactively and frequently adjust pay and 24 percent saying they increase pay for affected employees.What gap do you target between career levels(e.g

132、.,Software Engineer I to Software Engineer II)to avoid pay compression?What are you doing to address pay compression?Gap between career levels This year,we asked organizations what difference in pay they target between career levels.A third of organizations(33 percent),the largest grouping,say they

133、target a 5 to 10 percent difference in pay.We are increasing pay for employees effected by pay compressionWe are monitoring pay compression but havent made any decisions yetWe avoid pay compression by proactively and frequently adjusting payWe dont monitor pay compressionWe dont have the budget to a

134、ddress pay compressionOtherUnsure28%24%15%11%11%9%2% 3541%No51%Yes8%UnsureRed-circled employees New to our report this year are questions related to what actions employers take for pay increases when employees reach the top of their pay range,commonly known as red-circling.According to our survey,mo

135、st organizations(51 percent)do red-circle employees,which is more common in larger organizations.Red-circled employees are not eligible for a pay increase,but employers may reward these employees with a lump-sum reward.A majority(again,51 percent)place a cap on the maximum percentage that can be awa

136、rded,which is 6 percent of the base salary at the median.Do you red-circle employees when they reach the top of their pay range?Median maximum percentage cap6%Do you place a cap on the maximum percentage of current base salary to award as a lump sum?40%No51%Yes9%U 36Job descriptions are a foundation

137、al element of market pricing and compensation management.In 2025,64 percent of organizations say they have a centralized system of creating,approving,and maintaining job descriptions,which is a sizable increase from last year(57 percent).It is even higher for top performers(74 percent)and organizati

138、ons with mature compensation practices(76 percent).Drivers for the adoption of centralized job description management could include the growing challenge of compensation,investment in fair pay or job architecture,and interest in AI functionality.Regardless,in 2025,it is more of an imperative to have

139、 a centralized system for managing job descriptions.Job descriptionsDo you have a centralized management system for creating,approving,and maintaining job descriptions?+10%Top performers+12%Mature64%Yes32%No4%U 37Modern compensation management is informed by market data,but different organizations u

140、se different salary data sources.Most organizations rely on multiple sources of market data to inform base pay structures and determine market pricing.According to our survey,the median number of data sources used in market pricing is three.This rises to four for organizations with over 5,000 employ

141、ees.Salary dataMost popular market dataMost-trusted market dataMost important characteristicsJump to sectionMedian number of data sources used for market pricing 38Most popular market data Each year,we ask what salary data sources employers use as well as how much they trust those sources.Compared t

142、o last year,we are seeing more organizations use free or open online market data,which may be indicative of economic conditions and the need to cut costs.However,we are also seeing more organizations use HR-reported aggregate market data(e.g.,HRMA from Payscale),closed-network HR-reported salary dat

143、a(e.g.,Peer from Payscale),paid Employee-Reported data(e.g.,ERD),and salary data from job board postings(e.g.,Lightcast).Which sources do you use to obtain market data?(Multiple answer choices allowed.)0%10%20%30%40%50%60%20242025Free or open online dataSalary survey data from traditional publishers

144、HR-reported aggregate marketdata in compensation softwareSalary data from job board postingsClosed-network HR-reported salary dataTrade/industry association surveysPaid employee-reported salary dataGovernment dataHistorical salary data from employee recordsCompensation consultantsPersonalized compet

145、itor intelligence,including talking to candidates or recruitersUnsureOtherWe dont compare our jobs to market48%52%49%52%45%26%29%25%27%22%22%17%21%22%21%18%21%12%13%12%13%4%3%2%2%2%2%49%Rank sources by how much you trust and rely on them for accuracy in market 39Most-trusted market data Overall,orga

146、nizations continue to trust traditional survey data from third-party publishers the most.However,HR-reported aggregate market data(e.g.,HRMA from Payscale)and closed-network HR-reported salary data(e.g.,Peer from Payscale)are increasingly closing the gap to become contenders as technology evolves.Th

147、e least-trusted data sources continue to be free or open online data,which are typically intended to tease interest in offerings.First tier(most trusted)Second tierThird tier(least trusted)0%5%10%15%20%Salary survey datafrom traditionalpublishersHR-reportedaggregate marketdata in compensationsoftwar

148、eClosed-networkHR-reported salarydataTrade/industryassociation surveysCompensationconsultantsPaidemployee-reportedsalary dataHistorical salary datafrom employeerecordsGovernment dataFree or openonline dataPersonalizedcompetitorintelligence,includingtalking to candidatesor recruitersSalary data fromj

149、ob boardpostings16%8%3%14%9%5%5%7%8%9%8%8%9%10%8%9%9%8%10%8%7%8%9%12%18%14%5%5%9%10%10%9%10% 40FirstSecondThird0%20%10%30%40%50%.has data specificto our industry.includes compensablefactors valuable to ussuch as skills,years ofexperience,etc.has data that isrecent/timely has data specificto our geog

150、raphy has data specificto niche roles has a high volumeof data points is used by ourorganizations peersor direct competitors includes names ofspecific companies inthe dataset is powered by AI46%12%7%11%19%15%9%12%17%9%17%16%8%14%8%8%5%7%14%3%1%4%2%6%6%12%12%Most important characteristics When evalua

151、ting market data,organizations are most interested in data specific to their industry,followed by data with the compensable factors the organization uses to apply differentials.In third place overall are data points specific to geography.This is unsurprising,as these characteristics provide the most

152、 differentiation in salary considerations compared to other data points.For your organization,what are the three most important characteristics for assessing the quality of a data source used to price a job?(Select three.)The data source.Payscale delivers the most timely and transparent compensation

153、 data available.Our robust,HR-reported data will help you get a clear picture of what organizations like yours are paying their employees today,not months ago.Accurately price against your market Daily updates and unmatched transparency ensure you are pricing roles at todays market rate,even for hig

154、h-demand roles.Confidently communicate pay Granular filtering and custom data cuts give you the confidence to stand behind your pay decisions.The data you need,at your fingertips AI-powered participation and a unique,map-based experience deliver a 2.5X faster return on 418.6 millionincumbents8,500 j

155、obsavailable6,000+skills and certificationsExplore data products from Payscale Payscale is one of the worlds leading data providers,delivering high-quality data you can trust by prioritizing timeliness,transparency,coverage,and diversity.Learn moreWe keep users on the cutting edge of compensation da

156、ta.Payscale is one of the worlds leading data providers A compensation strategy is a documented plan that outlines how a company determines pay to attract,retain,and engage employees.As we shall see,a compensation strategy has become indispensable in recent years due to rapid wage growth during the

157、Great Resignation,increased public discourse around pay equity and fairness,legislative action around pay transparency,and the need to control costs.Compensation strategyFormal approachComponentsMarket strategyPay structuresJob architectureCompensable factorsShift differentialsPromotionsJump to sect

158、ionFormal approach According to our survey,61 percent of organizations say they have a compensation strategy.This increases to 88 percent for mature organization.The likelihood of having a compensation strategy also increases with organization size,rising from 47 percent for organizations with 1 to

159、99 employees to 85 percent for organizations with over 50,000 employees.Does your organization have a formal compensation strategy?61%8%26%5%YesNo,and we are not working on one No,but we are working on one U 43202020212022202320242025YesNo,but we are working on oneNo,and we are not working on oneUns

160、ure32%39%23%7%45%48%55%29%10%6%13%29%53%61%26%8%5%4%38%10%5%31%18%7%Formal approach to compensation strategy over timeWe changed the question slightly in 2025 to remove the conflation of strategy and philosophy,so year-over-year comparison is not exact,but the progression over time is still impressi

161、ve,showing that more organizations have a compensation strategy than ever before.Does your company have a formal compensation strategy/philosophy?*2025:Does your company have a formal compensation strategy? 440%10%20%30%40%50%60%70%80%Formal pay structuresMarket pricing strategyPay philosophyPay inc

162、rease strategyPromotion strategyPay equity/fairness strategyPay range progression strategyPay transparency strategyGeographic pay strategy/pay zonesCost-of-living adjustments strategyMarket adjustments strategyOtherWe do not have acompensation strategyFactors that differentiate pay(compensable facto

163、rs)Target percentiles by jobtype,level,or importance54%69%51%64%61%45%36%46%35%46%31%39%30%43%29%36%26%35%24%36%24%34%22%22%22%31%11%2%1%2%OverallMatureComponents New to this years survey is a question on the components that go into a compensation strategy.The most prominent component is having form

164、al pay structures(54 percent),followed by a market pricing strategy(51 percent),which is needed to make salary offers to candidates.The least common components are a strategy for cost of living and market adjustments.For organizations with a mature approach to compensation management,a pay philosoph

165、y is much more common.What does your compensation strategy include?(Multiple answer choices allowed.) 45Which of the following best describes your organizations market strategy?How confident are you that your market pricing is competitive for attracting talent?Market strategy A market strategy is a

166、sub-component of a compensation strategy that outlines what employers pay compared to the market.According to our survey,43 percent of organizations pay at the middle of the market,while 17 percent pay above the market,and 13 percent pay below the market.Between this year and last year,more organiza

167、tions are paying at the middle of the market compared to below the market or are applying different targets for different jobs.Most organizations(63 percent)are either fairly confident or very confident that their market pricing strategy is competitive for attracting talent.This increases marginally

168、 by company size.It is significantly stronger for organizations with a mature approach to compensation management(83 percent).20242025We target pay above the market(50th percentile)We target pay at the middle of the market(50th percentile)We target pay below the market(50th percentile)Our strategy h

169、as different targets for different jobsWe do not have a market strategyUnsure17%17%7%13%6%6%3%5%26%17%41%43%Pay structure definitionsA group of comparable jobs(e.g.,same level and job family)with one pay range that may or may not have been created using market data A range created using market data

170、that only applies to one job;in this system,each job has its own range A group of comparable jobs(e.g.,same level and job family)with one pay range that has been created predominantly using market data A wide group of jobs(e.g.,more than one level and/or job family)with one pay range that has been c

171、reated predominantly using market data A pay rate for a job with pre-defined increases for experience or tenure Traditional pay gradesMarket-based pay rangesMarket-based pay rangesBroadbandsStep structureJob-basedGrade- 46How does your organization structure pay?(Multiple answer choices allowed.) 47

172、Pay structuresOrganizations that have a formal pay structure say that it applies for 80 percent of their jobs.This increases by company size.For mature organizations,its 95 percent.There are different types of pay structures.Traditional pay grades are still the most popular at 65 percent.However,mos

173、t organizations are looking to switch to job-based pay ranges(46 percent).When we combine where organizations are now and where they want to be,job-based pay ranges become the top choice for half of organizations(50 percent).Job-based ranges are popular because they make the most sense to employees

174、and are useful for pay transparency and pay communications.However,job-based ranges can make job architecture more complicated.They are less popular for large organizations.Median percentage of jobs with formal pay structure 80%Traditional pay gradesBroadbandsStep structureJob-based pay rangesUnsure

175、CurrentFuture targetCurrent and future pay structure65%32%41%27%35%17%27%53%46%50%15%21%13%33%15% 4820242025YesNo,but we are working on oneNo,and we are not working on oneUnsure76%(+17)2025 mature57%59%20%21%19%16%4%4%Does your organization have a job architecture(i.e.,job levels and job families)?J

176、ob architecture It is becoming increasingly necessary for organizations to develop a job architecture to equitably manage structured pay.A job architecture provides a framework for career pathing that ensures that pay bands make sense across job levels,which creates incentive for employees to move u

177、p in the organization.Despite the importance,the percentage of organizations that have invested in job architecture has not changed dramatically since last year.Fortunately,having a job architecture is much more common for mature organizations(76 percent).It also increases with company size.42%70%54

178、%73%74%85%199 employees5,0009,999employees100749employees10,00049,999employees7504,999employees50,000 or more employeesYears of experience64%Performance56%Competitive skills45%Certifications44%Supervisory responsibilities42%College education38%Time in role37%Tenure at organization30%Location22%Worki

179、ng conditions17%Effort16%Shift15%Impact of errors9%Other3%None of the above6%For which compensable factors do you apply differentials or otherwise differentiate pay?(Multiple answer choices allowed.)Compensable factors Compensable factors are crucial in the age of pay transparency because they estab

180、lish clear,objective criteria for determining employee compensation.However,not all organizations reward the same compensable factors.Compensable factors can also vary across jobs.According to our survey,the most popular compensable factor to earn a pay differential is years of experience(64 percent

181、),followed by performance(56 percent).However,other compensable factors are important to employers for incentivizing performance,such as acknowledging effort and responsibility,while other factors like location may be less important or require more 50Compensable factors in job descriptions Less popu

182、lar is the practice of indicating which compensable factors impact salary in public job postings.Overall,37 percent of organizations say that all compensable factors are accounted for in job descriptions.Another 29 percent say that some are.Accounting for compensable factors is more common with matu

183、re organizations(44 percent)and top performers(52 percent).Compensable factors in pay communications While compensable factors are important for pay fairness and can be defensible reasons for pay differences,only 44 percent of organizations say they communicate all compensable factors to employees.T

184、his rises to 54 percent for mature organizations but interestingly does not vary much by company size.Are compensable factors communicated to employees?Are compensable factors clearly indicated in your job descriptions?Yes,some compensable factorsare part of pay communicationsUnsureNo44%27%22%7%Yes,

185、all compensable factorsare part of pay communications+15%Top performers+7%Mature37%Yes,all compensable factors areaccounted for in job descriptions29%Yes,some compensable factors areaccounted for in job descriptions29%No6%U 51Shift differentials New to the Compensation Best Practices Report this yea

186、r are data insights on shift differentials.While not all organizations employ workers on shifts,it is common for hospitals,labs,retail stores,call centers,restaurants,hotels,factories,law enforcement agencies,transportation companies,and correctional facilities.According to our survey,54 percent of

187、organizations employ people who work in shifts.We asked organizations which shifts earn a pay differential and whether that differential is a percentage of base pay or a flat monetary amount.Both may be possible given that different jobs may have different compensation strategies.According to our su

188、rvey,third shift(night shift)is the most likely to receive a pay differential.We also asked about shift differentials for on-call,peak hours,and hazardous work.Does your organization employ people on shifts?Does your organization pay a differential for any of these shifts?(Multiple answer choices al

189、lowed.)54%Yes43%No3%UnsureYes,applied as a percentage of base payYes,applied as a flat monetary amountNoUnsureSecond shift(swing shift)Split shift(long break)On callPeak hoursHazardouswork33%36%23%8%33%42%18%7%22%22%43%24%35%30%10%22%46%40%20%11%24%24%12%12%Shift differentials monetary amounts The a

190、mounts that organizations give for shift differentials vary considerably.Not everyone agrees which shift is the most or least desirable,as this can vary by the work and by the lifestyle and needs of individual employees.Second shift and third shift received the highest differential at the median for

191、 base percentage but were not distinguished from each other.However,when it comes to flat monetary amounts,there were fewer differences.The exception is on call,which saw an elevation in the flat monetary amount given within the Finance&Insurance industry.For each differential listed below,what is t

192、he percentage of base applied?(Please enter numeric percent values only.Decimals are allowed.If not applicable,do not enter a value.)For each differential listed below,what is the flat monetary amount applied to base?(Please enter numeric values only.Decimals are allowed.If not applicable,do not ent

193、er a value.)Median differential:Second shift(swing shift)Median differential:Third shift(night shift)Median differential:Split shift(long break)Median differential:On call Median differential:Peak hours Median differential:Hazardous work 10%10%8%7%8%9%Median differential:Second shift(swing shift)Med

194、ian differential:Third shift(night shift)Median differential:Split shift(long break)Median differential:On call Median differential:Peak hours Median differential:Hazardous work$2.0$2.0$2.0$4.00$2.0$ 52Business ServicesConstructionEnergy&UtilitiesEngineering&ScienceFinance&InsuranceManufacturingPhar

195、maceutical&BiotechnologyTechnology(including software)Transportation&WarehousingOtherAgencies&ConsultanciesRetail&Customer ServiceFood,Beverage,&HospitalityNonprofitHealthcare&Social AssistanceEducationGovernmentArts,Entertainment,&RecreationReal Estate,Rental,&LeasingTelecommunications10%10%10%10%1

196、0%10%10%10%10%10%8%7.8%7.3%7.3%6%5%5%N/AN/AN/A 53Promotions Also new to the Compensation Best Practices Report this year is a section on promotion strategy.Overall,the median pay increase given for a promotion is 8 percent.This varies by industry,ranging from 5 to 10 percent.Note that not all sector

197、s had enough responses to provide a median.What percentage increase do you target for promotions,on average?What percentage increase do you target for promotions,on average?8%Median promotional percent increase Do you differentiate promotion increases based on career path(e.g.,non-exempt,professiona

198、l,management,executive)?What percentage do you target for each type of promotion?Please respond with a numeric percent value.Decimals are allowed.43%45%12%YesNoUnsureMedian increase:Non-exempt(eligible for overtime)Median increase:ProfessionalMedian increase:ManagementMedian increase:Executive7%10%1

199、0%10% 54Promotions by job level In addition to asking about the median pay increase for a promotion,we also asked whether promotions vary by job level and what the median increase is for each level.Overall,43 percent of organizations say they do apply different increases to different career levels.I

200、ncreases are higher at the median for professional individual contributor roles and upper-level career paths than non-exempt,hourly 55Promotion policies We also asked about promotion policies,such as whether employees need to be tenured with the organization for a certain amount of time before they

201、are eligible for promotion.Overall,most organizations do require a tenure,though it can be as little as three to six months(18 percent)or as long as over two years(4 percent).We also asked what compa-ratio range employers target for newly promoted employees.Best practices would dictate that employee

202、s are promoted into a lower compa-ratio,as employees in new roles should have room to grow into the role.However,only 16 percent of organizations say they target a compa-ratio range of 80 to 85 percent and only 18 percent target a range of 86 to 90 percent.A very small percentage of organizations se

203、lected 96 to 100 percent or even over 100 percent.Do you require employees to be at the organization or in their role for a minimum amount of time before they are eligible for promotion?What average compa-ratio range do you target for newly promoted employees?Yes,36 monthsYes,712 monthsYes,12 yearsY

204、es,over 2 yearsNoUnsure18%21%19%4%32%5%8085%8690%9195%96100%Over 100%UnsureOtherWe dontdo this16%18%10%5%31%16%3%1%Remote work was a hot topic of debate in 2024 and looks to continue to be contentious in 2025 as return-to-office mandates become more common.While flexible workplace policies have cont

205、ributed to tensions between employers and employees,geographic pay methodologies havent changed significantly.Remote workWorkplace environmentsKnowledge workersReturn-to-office(RTO)Geographic pay strategiesJump to sectionWorkplace environmentsOrganizations that describe their workplace environment a

206、s remote shrank dramatically between 2024 and 2025,but not in the direction of traditional or hybrid work environments.Instead,more organizations are creating policies that take job type into account.Workplace environments did not change much between 2023 and 2024.TraditionalHybridRemoteOtherSplit b

207、y job type2024202531%32%30%29%26%28%11%9%2%2% 57Which of the following best describes your organizations workplace environment for knowledge workers,whose work is primarily conducted on a computer?Knowledge workersTo dig into this further,we asked organizations to describe their workplace environmen

208、t for knowledge workers only(i.e.,not frontline workers whose work must be conducted in person in a retail environment,manufacturing plant,etc.).We included multiple choices for hybrid environments to discover the most popular structure in organizations with mandatory office attendance.Overall,hybri

209、d office environments dominated at 52 percent,followed by traditional office environments at 27 percent,with remote-first environments making up only 16 percent of office types.Hybrid organizations have different policies around the number of days employees are required to be in the office.Collectiv

210、ely,they represent 52 percent of organizations.The most popular policy requires employees to be in the office three days a week(22 percent),with working in the office one day a week being the least popular option(5 percent).Organizations that selected Other referenced differences by department or lo

211、cation,or the decision being left up to managers.16%27%6%52%Remote-first(fullyflexible,no officeattendance required)Traditional(mandatoryoffice attendance 5days a week)HybridOther5%Hybrid(mandatory officeattendance at least 1 day a week)10%22%15%Hybrid(mandatory officeattendance at least 2 days a we

212、ek)Hybrid(mandatory officeattendance at least 3 days a week)Hybrid(mandatory officeattendance at least 4 days a week) 58Yes,we plan to tighten ourremote work policy toenforce more in-office workYes,we plan to loosen ourreturn-to-office policy toallow for more remote workNo,we dont have plans tochang

213、e this policyUnsure60%16%14%9%Do you plan to make changes to your organizations remote work/return-to-office policy in 2025?Did you deploy a return-to-office(RTO)mandate to bring employees back to offices in recent years?Are you losing talent over return-to-office policies?(These answer choices are

214、asked only to the 41%who said yes.)Return-to-office(RTO)Controversy surrounded return-to-office policies in 2024,which has continued into 2025.We asked organizations if they plan to make any changes in 2025 and 60 percent said no.However,16 percent said they plan to tighten their remote work policy

215、to enforce more in-office work while 14 percent said they plan to loosen their policy.Loosening return-to-office policies was more associated with top performers(25 percent).We asked if organizations deployed a return-to-office mandate in recent years.While a majority did not(54 percent),a good perc

216、entage had(41 percent).For those that mandated return-to-office,we asked if they were losing talent over their workplace policy and 39 percent said they were while 47 percent said they werent.41%Yes39%Yes54%No47%No5%Unsure14%UnsureKnowledge workers traditionalKnowledge workershybridKnowledge workers

217、 remoteTreat it the same irrespectiveof location(based on HQ ornational ranges)Apply differentials by locationMixed approachApply differentials bygeo-zones(tiers)Other55%35%42%22%28%20%12%16%15%6%16%19%5%4%4%42%Treat it the sameirrespective of location(based on HQ ornational ranges)25%Apply differen

218、tialsby location15%Mixed approach14%Apply differentialsby geo-zones(tiers)5%O 59Geographic pay strategies For this years survey,we simplified the question about geographic pay strategies,but the results are not materially changed.A strong percentage of organizations(42 percent)say they do not adjust

219、 pay for location,which is lower than last year(49 percent).However,14 percent have established geographic pay zones and 25 percent apply differentials by geographic location.When we look at this by workplace type for knowledge workers,pay by geo-zones experiences an uptick in responses.What is your

220、 approach to differentiating pay by location?Knowledge workers by workplace environmentWhat is your approach to differentiating pay by location?Additional 60In recent years,there has been an increase in conversation around the value of a college degree and whether and how organizations can hire and

221、promote employees based on skills and experience when they dont have a formal education but are proficient in the job responsibilities.This has become more relevant over the last few decades because not enough technically skilled people are available to fill jobs at the rate that workplaces have bee

222、n evolving.In our survey this year,we asked if organizations are experiencing skills gaps and if they are moving to a skills-based hiring strategy.About half of organizations are.Another 23 percent are unsure.Interestingly,organizations whose knowledge workers are remote reported less of a skills ga

223、p(37 percent).The percentage of organizations reporting a skills gap increases with company size,but intention to move toward a skills-based hiring solution decreases,likely due to the complexity of talent management in large organizations.Skills-based hiringSkills-based payJump to sectionAre you ex

224、periencing skills gaps in your workforce?Are you moving toward a skills-based hiring and talent management strategy?Payscale research on the impact of college degrees on pay in 2024 provides detailed data and insights on how a college degree impacts salary with guidance for human resources on managi

225、ng graduate premiums for skills-based pay.Read the report48%50%36%26%16%23%YesYesNoNoUnsureU 61Skills-based pay There are different ways to compensate for competitive skills.Applying a pay premium to base pay,otherwise known as skills differentials,is the most popular strategy for organizations to u

226、se(47 percent).Other strategies to compensate for in-demand skills include using a higher target percentile(41 percent)or slotting into a higher grade(24 percent).Organizations can also reward skills with a one-time bonus upon hire or the completion of education/certification.It is also possible for

227、 a bonus to be recurring as long as the skills in question remain hot.How do you compensate for competitive skills?(Multiple answer choices allowed.)Apply a premium to base payUse a higher target percentileGive a one-time bonus upon hire or skills attainmentGive a periodic bonus for as long as the s

228、kill is hotUnsureOtherNone of the aboveSlot into a higher grade5%1%7%22%24%30%41%47%38%We are making no changes to DEI28%We are increasing investment in DEI22%We do not haveDEI programs11%We are pulling backon DEI initiatives2%OtherDiversity,equity,and inclusion(DEI)has been receiving sharp criticis

229、m in recent public discourse.This was exacerbated by the Supreme Court decision to strike down affirmative action in 2023,which undermined the legal legitimacy of some DEI initiatives,such as diversity quotas,and led to the subsequent divestment in DEI by major brands and in the federal government.I

230、n the summer of 2024,the Society for Human Resource Management(SHRM)announced that it would be removing equity from their focus,citing a strategy to group equity under inclusion.This decision divided human resources professionals and led to heated debate.Proponents of downplaying equity in DEI cite

231、the shift in sentiment.Critics argue that equity is protected under the law through the Equal Pay Act,Title VII of the Civil Rights Act,The Lilly Ledbetter Fair Pay Act,and other legislation.In our survey,we asked whether equity should remain a central pillar of DEI according to the personal opinion

232、 of participants.Overall,66 percent feel that equity should remain a central pillar.However,18 percent do not,and another 16 percent are unsure.We also asked for participants to describe their organizations approach to DEI in 2025.Overall,38 percent of organizations are making no changes to DEI.The

233、second largest grouping 28 percent say they are increasing investments.Only 11 percent say they are pulling back on DEI initiatives.This would suggest that more organizations are in favor of DEI than against it.DEI and pay equityPay equityJump to sectionIn your personal opinion,should equity remain

234、a central pillar of diversity,equity,and inclusion(DEI)?Which best describes your organizations approach to DEI for 2025?66%Yes18%No16%U 622020201920212022202320242025YesNoUnsure38%62%38%46%66%34%63%23%62%57%29%13%26%12%14%54%62%N/AN/AN/AN/A 63Pay equity Year over year,we ask whether pay equity is a

235、 planned or current initiative.The increased attention on pay equity from before the COVID-19 pandemic until today has been remarkable.In 2019,only 38 percent of organizations had a pay equity initiative.While investment in pay equity has declined since the height of investment in 2022 following the

236、 Black Lives Matter protests of 2020 and the Great Resignation of 2021 to 2022,it remains a focus for most organizations today(57 percent).It should also be noted that a planned or current pay equity initiative is associated with top-performing organizations as well as organizations with a more matu

237、re approach to compensation management.Is pay equity analysis a planned or current initiative at your organization?71%Mature+27%Difference between mature and immature 62%Top performers+17%Difference between top performers and non-top performers YesIs pay equity analysis a planned or current initiati

238、ve at your organization?20242025GenderRace/ethnicity/national originAgeDisabilityVeteranstatusLGBTQ+ReligionOtherNone ofthe above71%57%64%45%51%40%31%25%22%16%17%14%16%13%4%13%31%2%Yes,I believe gender pay gap research is meaningful(i.e.,women earn less than men when data are uncontrolled and/or whe

239、ndata are controlled due to systemic disadvantages or discrimination)No,I do not believe gender pay gap research is meaningful(i.e.,either no gap exists,or it is not due to systemic disadvantage ordiscrimination)Unsure72%19%10%When it comes to internal pay equity analysis,most organizations focus on

240、 the gender pay gap (57 percent);however,analysis has dropped from 2024 to 2025.The decline is greatest for racial pay gaps but has fallen for all types of pay gap analyses.Out of curiosity,we also asked whether survey participants find gender pay gap research to be meaningful.While a strong majorit

241、y(72 percent)do believe gender pay gap research is meaningful,19 percent do not believe gender pay gap research is meaningful.Another 10 percent are unsure.Which protected classes do you analyze for pay equity?(Multiple answer choices allowed.)Do you personally believe that gender pay gap research i

242、s meaningful?Payscale has been studying the gender pay gap using Employee-Reported data from our online salary survey for over a decade.According to this analysis,both an uncontrolled and controlled gender pay gap is observable year over year.Read the reportPayscales Gender Pay Gap Report 64Numbers

243、add up to more than 100 due to roundingPay transparency laws require employers to disclose information about employee compensation,either to the employees themselves or by publishing pay ranges publicly in job ads.While the requirements vary by jurisdiction,the intent is to promote pay fairness and

244、close pay gaps for women,racial minorities,and other marginalized groups.Whether the laws are having this effect is unclear,but studies have shown that sharing pay ranges during the talent acquisition process enhances hiring outcomes.This is because job candidates are more likely to apply to positio

245、ns where the salary range is known and feel better about the process when this information is transparent.Pay transparencyPay transparency spectrumPay transparency legislationEmployee reactionsJump to 65Active pay transparency laws currently on the booksProposed pay transparency laws that are workin

246、g their way through legislationPay transparency spectrum Our pay transparency spectrum was modified in the wake of pay transparency legislation to capture changing expectations on pay transparency.Rather than a gradient from lack of transparency to full transparency,we now capture compliance with re

247、gulations through internal and external publication of pay ranges and methodology.As we tend to see year over year,organizations want to be more transparent than they are.Over half of organizations(52 percent)currently share pay ranges at least with individual employees.However,nearly three-quarters

248、 of organizations(72 percent)want to.Describe your organizations current position and 2025 target on the pay transparency 66We are communicating moreabout our compensation practicesWe are investing more in compensation dataWe have changed our compensationstrategy and/or structuresWe are investing mo

249、re incompensation software and toolsWe have invested in compensationstrategy and structures for the first timeOur compensation practices are more equitableNo impactUnsureOther31%24%22%18%17%17%17%11%3%How has pay transparency legislation impacted your compensation practices?(Multiple answer choices

250、allowed.) 67Pay transparency legislation Interest in pay transparency has been increasing as legislation grows.According to our survey,the biggest impact of pay transparency legislation on employers is that organizations are communicating more about compensation practices(31 percent),followed by hig

251、her investment in compensation data(24 percent)and changing compensation strategy and/or structures(22 percent) 68When do you first share your organizations pay range for a job with prospective employees?Interestingly,the percentage of organizations publishing pay ranges in job ads(regardless of whe

252、ther it is required by law)has declined slightly in 2025(56 percent)compared to 2024(60 percent)after ratcheting up from 2023(45 percent).This is likely to due to decreased attention in the media as well as growing contention around pay equity.In the job posting,regardless of when itis required by l

253、awIn the job posting,butonly when it isrequired by lawDuring the firstfull interviewAt the first liveconversationWe do not share the payrange for a job withprospective employeesWhen the initialverbal offer isprovidedWhen the initialwritten offer isprovidedWe dont havepay rangesAt the firstemployee r

254、eview20242025202339%36%27%18%21%20%10%8%12%17%11%11%13%8%7%7%5%6%3%2%3%4%3%2%2%1%1%60%56% 69Employee reactionsAccording to our survey,there has been a sharp decline in organizations that say they havent heard about pay transparency from employees.Instead,more employees are asking questions about pay

255、(32 percent),leaving the organization because they saw job postings with higher ranges elsewhere(20 percent),or seeing that they are paid less than what is advertised in the market(18 percent).There has also been an increase in the percentage of employees who express appreciation for pay transparenc

256、y(21 percent).What employee reactions has your organization experienced due to pay transparency legislation?(Multiple answer choices allowed.)20242025We havent heard anything from employees about pay transparencyEmployees have been asking more questions about their payOtherEmployees have expressed a

257、ppreciation for our transparent approach to payEmployees have left our organization because they saw job postings with higher ranges elsewhereEmployees have seen a job posting in our organization and realized they were being paid less for a similar job52%36%27%32%14%21%14%20%11%18%4%2%NoUnsureYes49%

258、51%40%39%11%10%20232024202559%34%7%A differentiating compensation strategy wont have the impact it could without pay communications.For many years,we have seen manager training on pay communications hover at around half of organizations.However,last year we saw a slight increase in the percentage of

259、 organizations that train managers,and this year we saw an even more marked increase(59 percent).Manager training also increases with company size.This is reflective of the pay transparency journey many organizations have been on,with the final stage being to enable proactive pay conversations.Pay c

260、ommunicationsYesTotal rewards statementJump to sectionDoes your organization train managers on how to have pay conversations with employees?47%60%58%70%68%81%199 employees5,0009,999employees100749employees10,00049,999employees7504,999employees50,000 or more 71Total rewards statement One aspect of pa

261、y communications is a total rewards statement(TRS),which outlines an employees rewards(salary,variable pay,equity,benefits,retirement,perks,etc.)and may apply a monetary value to non-cash items.According to our survey,61 percent of organizations supply some kind of total rewards statement to employe

262、es which has been increasing over time.A total rewards statement outlines all of an employees rewards and often applies a monetary value to non-cash items.Does your organization provide this kind of statement to employees?Yes,including both total cash compensation and the value of benefitsYes,but on

263、ly for total cash compensationCompany size doesnt have an impact on total rewards statements,but top performers are more likely to use total rewards statements compared to non-top performers.Mature organizations are more likely to use total rewards statements that include both total cash compensatio

264、n and the value of benefits.202420252023Yes,including both totalcash compensation and thevalue of benefitsYes,but only for totalcash compensationNo,but were considering itNoUnsure42%15%23%8%4%2%35%38%N/AN/A14%44%46%15%13%59%15%+20%+11%+20%-2%54%22%MatureMatureDifference between top performers and no

265、n-top performers Difference between top performers and non-top performers Difference between mature and immature Difference between mature and immature Top performers Top performers Total rewards include base pay,variable pay,and benefits offered by the organization to attract and retain talent.Acco

266、rding to our survey,65 percent of organizations are either fairly confident or very confident that their total rewards package is effective.Most organizations offer variable pay(e.g.,bonuses,commissions)to attract and retain talent(81 percent),which is a 1 percent increase over last year.This is hig

267、her for mature organizations(87 percent).Variable pay and benefitsConfidenceVariable payTypes of bonusesJump to sectionConfidenceVariable payOn a scale of 1 to 5,how confident are you in your current total rewards packages being effective at attracting and retaining talent?Does your organization off

268、er variable pay(e.g.,bonuses,commissions,etc.)?YesNoUnsure81%17%2% 73Hiring bonusesIndividual annual incentive bonusesYear-end bonusesCompany performance bonusesRetention bonusesSpot bonuses or other discretionary bonus programsEquity or long-term incentivesTeam incentive bonusesProfit sharingMarket

269、 premium bonusesOtherNone of the above202420230%10%30%20%40%50%60%44%43%41%37%34%38%33%43%31%27%19%20%19%19%17%5%6%3%2%2%9%N/A54%61%Types of bonuses There are different types of variable pay.According to our survey,the most popular type of bonus offered in 2024 was hiring bonuses.However,if you comb

270、ine individual annual incentive bonuses and year-end bonuses(78 percent),then that is the most popular bonus type.We did not ask about year-end bonuses last year.Other types of bonuses declined in 2025 compared to 2024,likely due to a challenging economy and a labor market that favors employers.What

271、 types of bonuses or incentives did your organization use to reward top performers in last year?(Multiple answer choices allowed.) 7445%28%49%36%24%13%10%2%21%18%34%33%21%18%33%38%38%29%38%47%2%4%5%8%Year-end bonusesDifference*18%Hiring bonusesTeam incentive bonusesMarket premium bonusesProfit shari

272、ngRetention bonusesEquity or long-term incentivesCompany performance bonusesSpot bonuses or other discretionary bonus programsIndividual annual incentive bonusesOtherNone of the aboveNon-top performersTop performers13%10%8%3%1%-3%-4%-9%-9%-2%-3%When we look at what bonuses were most popular for top-

273、performing organizations(those that exceeded revenue goals),we see the biggest difference in year-end bonuses,hiring bonuses,team incentive bonuses,market premium bonuses,and profit sharing.What types of bonuses or incentives did your organization use to reward top performers in 2024?(Multiple answe

274、r choices allowed.)*Calculating the difference accounts for hidden decimals2024202420252025DifferenceDifferenceMenopause leaveWork-from-home stipendMenstrual leaveUnlimited PTO Commuter allowanceTravel benefits/perks for frequent travelersMental health or total wellness programGym membership or reim

275、bursement Student loan repaymentPaid sabbatical Paid or subsidized childcareFour-day workweekShort-term disabilityStock/equityPaid lunch,snacks,or food allowanceFertility or family planning services Extended paid family leaveAccrued or granted sick days Pet insuranceCharitable contribution matching1

276、.5%7.5%2.1%12.2%9.2%7.2%52%18.2%7.3%6.6%5.8%7.9%61.0%17.3%14.8%10.5%17.3%44.1%18.6%9.7%7.2%16.5%63.6%15.9%26%19.1%73.7%59%53%19.4%71.9%31.6%84.8%78%63.4%48.9%37.6%50.6%2.1%1.22%2.3%8.0%2.5%12.5%9.5%7.2%52%18.2%7.1%6.4%5.6%7.5%60.4%16.6%13.9%9.5%16.2%43%17.4%8.3%5.8%15.1%62.0%14.1%24%16.9%71.2%56.3%5

277、0.2%16.4%68.8%28.3%81.2%73.9%59%44.4%33%45.1%2.3%2.30%0.8%0.5%0.4%0.3%0.3%0%0%0%-0.2%-0.2%-0.2%-0.4%-0.6%-0.7%-1%-1%-1.1%-1.1%-1.2%-1.4%-1.4%-1.4%-1.6%-1.8%-2%-2.2%-2.5%-2.7%-2.8%-3%-3.1%-3.3%-3.6%-4.1%-4.4%-4.5%-4.6%-5.5%0.2%1.1%Unpaid sabbatical Financial advisor/debt servicesLong-term disabilityP

278、ension Ability to work fully remoteExtended family leave Vision insuranceEmployee assistance Accrued or granted PTOFlextimeLife insurancePaid vacation(reimbursed)Medical insuranceDental insurance401(k),403(b),or other retirement contributionsAbility to work from homeEducation or tuition reimbursemen

279、tFixed holiday scheduleOtherNone of the 75BenefitsBenefits are an important part of total rewards but are getting more expensive especially healthcare.In 2025,we see organizations pulling back on benefits,with the most reductions seen in fixed holidays,retirement contributions,ability to work from h

280、ome,education reimbursements,and dental insurance.Which of the following benefits,perks,or rewards did your organization offer most or all employees?Methodology The 2025 Compensation Best Practices survey gathered 3,595 responses from NovemberDecember 2024 with a completion rate of 55 percent.A brea

281、kdown by company size,industry,and other firmographics is available in the methodology at the end of this report.PerformanceTop-performing organizations are defined as those that exceeded their revenue goals in 2024 based on a self-selected answer choice in the survey.In this years study,25 percent

282、of respondents fit this criterion,which is greater than last year(21 percent).Will your company meet its overall revenue goals for the year?We will meet revenue goalsWe will exceed revenue goalsWe will not meet revenue goalsWe do not have revenue goalsOtherUnsure41%25%14%7%0%13% 76Where is your orga

283、nization headquartered?Which of the following best describes your organizations total workforce?LocationRespondents to this years survey were predominantly in the United States(79 percent),with 12 percent in Canada and the rest from other countries,with no other country representing more than 1 perc

284、ent.Distribution We asked participants to define how their workforce is concentrated or distributed across locations in terms of pay zones.The largest group(42 percent)are concentrated in one location,while 40 percent have offices or employees in multiple locations or pay regions,and 18 percent have

285、 a global workforce with employees distributed across the world.United StatesCanadaUnited KingdomEuropeOther79%12%1%1%7%40%18%42%We have a globalworkforce withemployees distributedthroughout the worldWe are concentratedprimarily in one locationor similar pay regionWe have officesand/or employeesconc

286、entrated inmultiple locationsor pay 78How many full-time employees are in your organization?27%7%31%8%25%2%199 employees5,0009,999 employees100749 employees10,00049,999 employees7504,999 employees50,000 or more employeesSizeWe separated out six organizational sizes for comparison,with 27 percent of

287、respondents representing those with fewer than 100 employees and 2 percent with over 50,000 employees.The median org size in our study has 475 employees.The average is 7,117.Which of the following best describes your organization?What is your primary industry?Industry and organization type The top i

288、ndustries represented in the survey are Healthcare&Social Assistance(11 percent),Manufacturing(11 percent),Technology(9 percent),and Finance&Insurance(8 percent).In terms of organization type,most respondents were either from a private company,public company,or nonprofit,but we also have respondents

289、 from governments,schools,colleges/universities,hospitals,cooperatives,and trade associations.EducationFinance&InsuranceEnergy&UtilitiesTransportation&WarehousingEngineering&ScienceAgencies&ConsultanciesRetail&Customer ServiceHealthcare&Social AssistanceGovernmentFood,Beverage,&HospitalityArts,Enter

290、tainment,&RecreationConstructionManufacturingOther IndustriesTelecommunicationsTechnology(including software)Business ServicesReal Estate,Rental,&LeasingPharmaceutical&BiotechnologyNonprofits11%11%9%8%8%6%5%5%4%3%3%3%3%3%2%2%2%1%1%10%CooperativeGovernmentSchool/school districtPrivate companyHospital

291、Public companyNonprofit organizationTrade associationOtherCollege/university58%18%12%3%2%2%2%1%2%0% 79What is your job level?28%Individualcontributor27%Manager6%Vice president14%C-level24%DirectorJob levelRespondents were a mix of job levels this year.Managers or directors made up half of respondent

292、s at 52 percent combined.Executives made up 20 percent of respondents with VPs and C-suite positions combined.Individual contributors made up 28 percent of 80What role(s)do you play in compensation?(Multiple answer choices allowed)RolesOur respondents play a variety of roles in the compensation proc

293、ess,including creating or managing job descriptions(65 percent),reviewing and making pay increase recommendations(56 percent),creating compensation philosophy and/or strategy(49 percent),selecting data sources(49 percent),using compensation software to manage pay(36 percent),and more.Create,manage,o

294、r evaluate job descriptionsCreate,manage,or evaluate compensation structuresMake or review pay increase recommendationsParticipate in or manage compensation surveysMarket price or benchmark jobsCreate,manage,or evaluate job architecture and/or job levelingCreate compensation philosophy and/or strate

295、gySelect compensation data sourcesComplete or support pay equity analysisPerform other types of pay analysisCreate,manage,or evaluate compensation budgetsApprove pay increasesCreate,manage,or evaluate variable pay(bonuses)for the whole organizationUse compensation software to manage payDevelop pay c

296、ommunications or lead trainingProduce reporting for an executive audience regarding compensationSelect or approve purchase of or subscription to compensation softwareCreate,manage,or evaluate executive compCreate,manage,or evaluate sales comp or commission-based payNone of the above65%59%56%53%52%51

297、%49%49%45%44%42%40%38%36%36%34%28%26%21%5%0%100% 81Pay is powerfulTo learn more,visit As the industry leader in compensation management,Payscale is on a mission to help job seekers,employees,and businesses get pay right and to make sustainable fair pay a reality.Empowering 65%of the Fortune 500,Payscale provides a combination of diverse and dynamic data sources,experienced compensation services,and scalable software to enable organizations such as Panasonic,ZoomInfo,Chipotle,AccentCare,University of Washington,American Airlines,and PetSmart to make fair and appropriate pay 82About Payscale