Comp and Coffee Closing the Confidence Gap: Pay Strategy Challenges in 2025
Jun 20, 2025
Paul Wolfe, a champion of human-first leadership and former CHRO, joins Lexi Clark, Chief People Officer at Payscale, to tackle the pressing issues surrounding compensation strategies. They discuss how pay transparency laws and shifting employee expectations are challenging HR professionals. The conversation highlights the impact of effective communication on trust and retention, the struggle to maintain fairness amid financial pressures, and the crucial need for manager training in pay discussions. Tune in for insights on navigating the complexities of compensation in today's workforce!
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Compensation Is A Converging Pressure Point
- Compensation became the top challenge in 2025 because multiple pressures collided: transparency, budget limits, and changing expectations.
- HR teams gained strategic responsibility without matching resourcing, making compensation harder to manage.
Prepare Infrastructure Before Revealing Ranges
- Do invest in the infrastructure and resourcing needed for pay transparency before launching it publicly.
- Provide managers tools and data so they can have confident, consistent pay conversations with employees.
Publish Findings And A Realistic Fix Plan
- If you uncover pay gaps, be transparent about findings and present a realistic multi-year plan to fix them.
- Explain trade-offs and financial impact so employees understand why changes may take time.
