What pay structures are most commonly used by organizations?

Traditional pay grades are currently the most-used structure (66%), though job-based pay ranges are the most popular target when combining current and future adoption (44%), per Payscale's 2026 Compensation Best Practices Report.

Compensation Strategy: Pay Philosophy, Structures & Best Practices

Q: How many organizations have a formal compensation strategy?

61% of organizations report having a compensation strategy in 2026, an 8% increase since 2024, rising to 73% for Payscale customers, per Payscale's 2026 Compensation Best Practices Report.

Q: How many organizations have a formal pay progression process?

55% of organizations have a formal process for determining where employees fall in the pay band and how they progress over time, per Payscale's 2026 Compensation Best Practices Report.

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An HR generalist’s guide to compensation management

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Build a retention strategy for today's workforce On-demand webinar

Join livingHR and Payscale for a webinar which will explore practical, high-impact strategies for retaining critical talent in a volatile environment, with a focus on why traditional, siloed approaches to compensation intelligence are holding organizations back.

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Benchmarking jobs using smart technology

Job benchmarking used to be painfully slow. The first problem? Finding reliable market data.

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2026 Compensation Best Practices Report

Survey data and insights from HR and compensation professionals to support best-in-class compensation management in a year of strategic alignment.

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Mastering merit season: Best practices for success On-demand webinar

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The real costs of pay compression

With a labor market cooling, some employers aren’t concerned with pay compression.

How many organizations have a formal compensation strategy today, and is that number growing?

61% of organizations say they have a compensation strategy, which is an 8% increase since 2024 and rises to 73% for Payscale customers.

Which pay structure are organizations most likely to adopt—traditional pay grades or job-based pay ranges?

While traditional pay grades are the most used pay structure today (66%), job-based pay ranges are most popular when combining current and future targets (44%).

How many organizations have a formal process for where employees land in the pay band and how they move up over time?

55% of organizations have a formal process for determining where employees fall in the pay band and how they progress up the pay band.