OpenComp Sheds Light on Today's Most Common Compensation Practices Amid Rapidly Changing Labor Market in New Report
With historic pay transparency legislation impacting approximately one-fifth of the workforce in 2023, getting compensation right has never been more important for employers. Compensation intelligence software provider OpenComp today released a new study that sheds light on the trending compensation practices being used to earn and keep top talent.
Leveraging compensation intelligence from its database of thousands of companies, OpenComp's "State of Compensation Q4 2022" report outlines the ways that compensation has shifted between Q3 and Q4 2022 in areas such as:
Key among the findings, the study found that 70% of organizations have defined salary ranges in place, which is likely to increase as more companies get up to speed with state and local legislation. More than half of organizations also have a geographic pay strategy defined and in place, demonstrating that the pandemic has had a log-lasting impact on compensation. What organizations actually allocate to payroll depends on total funding, size, location and more.
"Compensation trends are changing at record-breaking speed - accelerated by the pandemic's lingering influence, our uncertain economic climate and legislation that spans pay transparency, reproductive rights, family and medical leave, and more," said Thanh Nguyen, CEO and co-founder, OpenComp. "To keep up, people leaders need dynamic compensation policies that are hyper-customized for their industry, company stage and location strategy. This report outlines market trends and benchmarks they can leverage in decision making."
The tech industry in particular has experienced a tumultuous end to 2022, with hiring freezes and layoffs making headlines across both public and high-growth companies. But, the data shows that Silicon Valley has yet to see a significant shift in compensation. The average base salary for a SaaS technical role in the San Francisco Bay Area is 30% higher than a SaaS technical role outside the Bay Area.
"Tech talent will always be in demand, but companies are being more judicious in hiring for only very specific skills, rather than hiring for growth at all costs," said Nguyen.
To download and read the full report, visit here. To learn more about OpenComp and sign up for free, please visit http://www.opencomp.com.
This study was conducted using data from OpenComp's proprietary Market Pulse, which consists of thousands of organizations employing an aggregate of 75,000 employees across 18 industries. Trends reflect quarter-over-quarter changes between Q3 and Q4 2022.
Employers and employees use OpenComp to get clarity at the point of every compensation decision. Together, they're pioneering a new standard for compensation, one that's competitive, equitable and scalable.
With OpenComp's Compensation Intelligence Platform, business and HR leaders optimize compensation program effectiveness with benchmarking, design, and activation tools. Managers, recruiters, employees, and candidates use OpenComp to make the best compensation decisions for themselves and their teams.
Founded in 2021 by Salesforce's founding HR team, OpenComp is backed by J.P. Morgan, TIME Ventures (the investment fund for Marc Benioff), 8VC, and more. Get started for free at www.opencomp.com, where tiered pricing and services are also available.
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