Payscale’s Post

2025 is the year of contention—employers and employees are facing off over pay. Will your compensation strategy stand up? 👀 3,595 organizations across industries have shared how they’re navigating pay in a rapidly changing market in our 16th Annual Compensation Best Practices Report. The key takeaway? 2025 is the year of contention. After a year of slow hiring and retention efforts, the job market is heating up. But tensions between employers and employees are growing: ⚡️ Workers feel more secure in their jobs, but less confident in their pay. ⚡️ Pay transparency laws are expanding but fewer companies are voluntarily sharing pay ranges (56% in 2025 vs 60% in 2024). ⚡️ Some organizations are cutting back – 18% reduced pay increases, 14% lowered salary offers, 15% hired less-experienced workers to cut costs. At the same time, organizations are making bold moves to stay competitive. 📈 70% now have a dedicated compensation professional (up from last year). 📊 61% have a formal compensation strategy in place (a growing priority). 💡 30% are investing in compensation technology to streamline pay decisions. What’s inside the full report? ✅ The biggest trends shaping compensation in 2025. ✅ How pay strategies are shifting amid economic and political uncertainty. ✅ Actionable insights to help you attract and retain top talent As HR leaders balance cost controls with the growing demand for fair pay and better working conditions, investing in a compensation strategy is more important than ever. Companies that prioritize pay equity, compensation transparency, and AI-driven solutions will be best positioned to navigate this 'Year of Contention' and stay competitive in attracting and retaining talent. This is the largest and most comprehensive compensation study of its kind. And it’s your guide to navigating the year of contention. 🔗 Check out the full report in the comments.