Comp and Coffee

110: Key trends from the 2025 Compensation Best Practices Report

11 snips
Apr 8, 2025
In a compelling discussion, Amy Stewart, Principal of Research and Insights, Sara Hillenmeyer, Senior Director of Data Science, and Lulu Seikaly, Senior Corporate Employment Counsel at Payscale, analyze the evolving landscape of compensation. They dive into the 2025 Compensation Best Practices Report, highlighting trends in pay transparency and AI's growing role in HR. The trio emphasizes the need for organizations to foster clear communication about compensation practices while also addressing the challenges of pay equity and legislative impacts on compensation strategies.
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INSIGHT

Year of Contention in Compensation

  • The 2025 Compensation Best Practices Report is dubbed 'The Year of Contention' due to tensions around fair pay and optimizing spend.
  • Pay increases are expected to drop closer to pre-pandemic norms, signaling shifting labor market dynamics.
INSIGHT

Rising Demand for Pay Transparency

  • Employee demand for pay transparency is rising with more pay-related questions from staff this year.
  • Organizations are increasingly training managers to handle pay conversations, rising from 51% to nearly 60%.
INSIGHT

Growth in Compensation Technology

  • Use of purpose-built compensation technology climbed 5% to a third of surveyed organizations.
  • This reflects growing reliance on tech to make confident, strategic pay decisions.
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