Seattle, WA—February 18, 2015— Today, PayScale, Inc. – the leader in cloud compensation software for businesses and individuals – released the 2015 Compensation Best Practices Report. Based on data from more than 5,000 survey respondents representing executives, line of business managers and human resource practitioners, the report reflects current attitudes about compensation, business growth, hiring and retention. The latest annual report shows most companies are highly concerned about attracting and retaining top performing employees which creates serious doubts about their ability to compete effectively in our rebounding economy.
“During the worst recession most employers have ever experienced, too many firms gave little thought to retention, compensation and talent development. Managers felt that anyone who had a job would be content with that alone,” said Brian Sommer, founder of Vital Analysis. “Unfortunately, that uninformed or nonchalant attitude is out of sync with the current economic situation. Today, employees have options and they intend to exercise them. Business leaders must adopt new processes and technologies if they wish to remain competitive.”
The vast majority of companies plan to grow in size and offer salary raises in 2015, but these businesses face more pressure than ever to attract and retain the right people. Key findings from the 2015 PayScale Compensation Best Practices Report include:
- 55 percent of organizations increased in size in 2014; only 9 percent decreased
- About three-quarters of companies expect their financial situation to improve in 2015
- In 2014, 85 percent of companies gave pay raises and 89 percent say raises are in the plans for 2015
- Three-quarters of respondents gave bonuses in 2014, more than in previous years
- The #1 reason people leave medium and large organizations is “seeking higher pay”
- Retention woes remain at an all-time high with nearly 60 percent of respondents citing it as a top concern
- The professional, scientific and technology services industry is most concerned with employee retention
- More than half of all respondents agree with the statement: “There is a lack of qualified applicants for our open job positions”
- IT, management and engineering positions were the hardest to fill
“Increasingly, a company’s ability to get compensation right is a prerequisite for achieving its growth projections,” said PayScale’s Vice President of Marketing, Tim Low. “Real-time compensation data that reveals the realities of specific talent markets allows companies to attract their most desired candidates and also retain existing employees who might otherwise be looking for a better deal.”
“Even in our age of data overload, many businesses still take a ‘play it by ear’ approach when it comes to talent management,” said Michael Moon, Human Capital Management Research Director at Aberdeen Group. “However, these results show that companies need to get very serious, very quickly about retention and compensation by adopting modern technologies and approaches if they want their businesses to not only survive, but thrive in the new economy.”
The report is a summary of survey data collected from business leaders at small, medium and large companies representing a large cross section of industries from North America and around the world. The full 2015 PayScale Compensation Best Practices Report is available for download at http://resources.payscale.com/hr-2015-compensation-practices-report.html.
Cloud software, crowdsourced data and unique algorithms power the world’s largest real-time database of rich salary profiles giving PayScale the unique ability to provide job seekers and employers alike immediate visibility into the right pay for any position. PayScale’s cloud compensation software is used by more than 3,000 customers including Bloomberg BNA, Cummins, Warby Parker, Clemson University and Signature HealthCARE. For more information, please visit: www.payscale.com or follow PayScale on Twitter: http://twitter.com/payscale.