Payscale’s 2024 report highlights that compensation remains the most challenging HR activity, yet investment in compensation has decreased. While 59% of organizations find compensation more challenging, only 50% use purpose-built technology. AI adoption in pay decisions is low, with just 7% fully on board. Voluntary turnover dropped to 21% in 2023. The average base pay increase is predicted to be 4.5% for 2024, down from 4.8% in 2023. With a cautious outlook for 2024, organizations are urged to formalize compensation strategies, invest in modern technology, and enhance pay transparency to retain talent and prepare for future growth.

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