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Webinar - 2025 Compensation Best Practices Panel
Join leaders from Payscale’s HR and compensation teams for an exclusive deep dive into the 2025 Compensation Best Practices Report.
Webinar - 2025 Compensation Best Practices Panel
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- 2. Today’s panelists Zach Jamieson SeniorManager, HR Lexi Clarke Chief People Officer Minde Stone Senior Director, Total Rewards and People Ops
- 3. Today’s agenda Compensation Best PracticesReport introduction and methodology Panel Audience Q&A
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- 5. The 2025 CompensationBest Practices survey gathered 3,595 responses from November–December 2024 with a completion rate of 55%. A breakdown by organization size, industry, and other firmographics are available in the methodology at the end of the report. Where is your organization headquartered? Which of the following best describes your organization’s total workforce?
- 6. Organization size We separatedout six organizational sizes for comparison, with 27 percent of 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.
- 7. Industry and organization type The topindustries 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 from governments, schools, colleges/universities, hospitals, cooperatives, and trade associations. Which of the following best describes your organization? What is your primary industry?
- 8. What role(s) doyou play in compensation? (Multiple answer choices allowed)
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- 10. What are yourthoughts and reactions to the top challenges of 2025? What will be the greatest challenges for HR in your organization in 2025 compared to previous years?
- 11. Poll: What willbe the greatest challenges for HR in your organization in 2025 compared to previous years? A. Compensation B. Retention C. Recruitment D. Engagement E. Exploring AI or defining our AI strategy F. Career pathing G. Fostering company culture H. Modernizing HR software I. Employee and labor relations J. Performance management K. Learning and development L. Workforce planning M. Workplace environment N. Job description management O. Workplace policies P. ESG (environmental, social, and governance)
- 12. How will this uniquelabor market impact recruiting and retention? What can we expect in terms of the labor market in 2025? Average employee turnover Median employee turnover What was your organization’s employee turnover rate in 2024? 15% Total median 10% Voluntary median turnover
- 13. What are weseeing with pay increases? Do you think it is too high, are we concerned? What do you expect will be the percent base-pay increase given to employees in your organization? Median percent base-pay increase 3.8% 2024 actual 3.5% 2025 planned Does your organization plan to give base-pay increases in 2025? 86% 2024 actual 81% 2025 planned Yes 12% 2024 actual 5% 2025 planned No 2% 2024 actual 13% 2025 planned Unsure
- 14. Why are paycommunications so essential in the current times and how do you enable your managers to do this work successfully? Does your organization train managers on how to have pay conversations with employees?
- 15. How is atotal rewards statement useful as a strategy, are there other strategies you recommend? A total rewards statement outlines all of an employee’s rewards and often applies a monetary value to non-cash items. Does your organization provide this kind of statement to employes?
- 16. What does increasing paytransparency legislation mean for HR and compensation teams? How has pay transparency legislation impacted your compensation practices? (Multiple answer choices allowed)
- 17. More folks thanever have a compensation strategy, how important will a compensation strategy be to success in 2025? Does your company have a formal compensation strategy/philosophy?* *2025: Does your company have a formal compensation strategy?
- 18. Why are folksnot investing in compensation tech?
- 19. Is pay equity/DEIstill a priority amidst everything going on? In your personal opinion, should equity remain a central pillar of diversity, equity, and inclusion (DEI?) 66% Yes 18% No 18% Unsure Which best describes your organization’s approach to DEI for 2025?
- 20. Are sources thatfolks are using for salary data and market pricing changing? Which sources do you use to obtain market data? (Multiple answer choices allowed)
- 21. With AI becomingmore prevalent, how will it play into compensation? What advice do you have for folks? What best describes your sentiment around leveraging AI/machine learning?
- 22. Poll: What willbe the greatest challenges for HR in your organization in 2025 compared to previous years? A. Compensation B. Retention C. Recruitment D. Engagement E. Exploring AI or defining our AI strategy F. Career pathing G. Fostering company culture H. Modernizing HR software I. Employee and labor relations J. Performance management K. Learning and development L. Workforce planning M. Workplace environment N. Job description management O. Workplace policies P. ESG (environmental, social, and governance)
- 23. What benefits are driving impactin terms of attraction, retention, and engagement?
- 24. Poll: Is yourorganization focusing on skills-based pay? A. Yes B. Yes, for certain roles C.We are considering it D.No E. Unsure
- 25. How do yousee skills-based pay evolving in the future? Are you experiencing skills gaps in your workforce? 48% Yes 36% No 16% Unsure Are you moving toward a skills-based hiring and talent management strategy? 50% Yes 26% No 23% Unsure
- 26. How are organizationsnavigating remote work and return to office mandates? Do you plan to make changes to your organization’s remote work/return-to-office policy in 2025? Are you losing talent over return-to-office policies? (These answer choices are asked only to the 41% who said yes) 39% Yes 47% No 14% Unsure
- 27. Q&A Feel free toask any questions in the chat! Would you like a demo of Payscale's compensation management solutions? Let us know in the open poll!