When pay research speaks: What HR and compensation leaders need to know now

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Feb 24, 2026

Amy Stewart, Payscale research lead who tracks compensation trends, and Stacey Harris, HR systems research veteran, discuss turning pay and HR systems data into strategic, defensible decisions. They cover pay increase trends and “peanut butter” raises. They debate growth versus cost pressures, the role of AI in market pricing, and how validated data and tech choices shape strategic compensation.

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ADVICE

Don’t Default To Peanut-Butter Raises

Avoid 'peanut butter' across-the-board raises as a long-term retention strategy for top talent.
Instead, prioritize merit increases and targeted total rewards for critical roles.

INSIGHT

Hidden Talent Shift To SMBs

Media headlines overemphasize enterprise layoffs while many mid-market firms plan to hire.
Talent is shifting from large enterprises to SMBs, aided by AI that lets smaller firms act bigger.

ADVICE

Benchmark With Multiple Validated Sources

Use multiple validated data sources and year-over-year trends when benchmarking pay.
Segment data by company size, industry, and region before applying it to your strategy.

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In this episode of Comp and Coffee, Ruth Thomas sits down with Stacey Harris, Chief Research Officer at Sapient Insights Group, and Amy Stewart, Payscale’s Manager of Content & Research, to unpack how HR and compensation leaders can turn data into strategic, defensible decisions.

We explore the latest research on HR systems, compensation trends, and the growing role of AI in pay and talent management. Stacey shares insights from the 28th annual HR Systems Survey, highlighting the tension HR leaders face between driving growth and managing costs, navigating workforce shifts, and understanding mid-market versus enterprise trends. Amy provides a sneak peek at Payscale’s 2026 Compensation Best Practices Report, including pay increase trends, “peanut butter” pay practices, and strategies for retaining top talent while controlling costs.

Key takeaways include:

Data-driven decision making: Use multiple validated data sources to interpret trends and avoid overreacting to headlines.
Strategic compensation: Confidence in pay offers and total rewards is critical, especially in uncertain markets.
Technology & AI: AI is transforming compensation strategy, enabling smarter market pricing and strategic insights—but trust and validated data remain essential.
HR as a business partner: Compensation isn’t just an HR function; it’s a strategic lever that should inform enterprise-level decisions and connect to business outcomes.

Whether you’re evaluating HR tech, managing tight budgets, or planning for AI integration, this episode provides practical guidance for leaders who want to leverage research to make smarter, more strategic decisions in 2026.

Episode resources:

Sapient Insights Group HR Systems Survey Report: https://bit.ly/4rB1zos
Payscale 2026 Salary Increase Preview Report: https://bit.ly/3NWIQ8a
Payscale Salary Budget Survey: https://bit.ly/4qYwlaD
Payscale Pay Trends and Market Pricing Research: https://bit.ly/4kj5hk4
Email: coffee@payscale.com for listener questions and suggestions