{"id":867517,"date":"2025-07-08T11:12:25","date_gmt":"2025-07-08T15:12:25","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/"},"modified":"2025-07-08T11:12:25","modified_gmt":"2025-07-08T15:12:25","slug":"most-us-employers-not-budging-on-budgets-salary-increases-remain-flat","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/","title":{"rendered":"Most US employers not budging on budgets, salary increases remain flat"},"content":{"rendered":"<div class=\"mw_release\">\n<p align=\"left\">NEW YORK, July  08, 2025  (GLOBE NEWSWIRE) &#8212; Average salary increase budgets for US companies in 2026 are expected to remain stable at 3.5%, matching 2025\u2019s actual increases. This is according to the latest Salary Budget Planning Report by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.<\/p>\n<p>Three out of five organizations saw their salary budgets change in the last pay cycle. More than half (53%) of these organizations reported no change between their anticipated and actual pay budgets in 2025. For the nearly one-third (31%) of these organizations that are projecting lower salary increase budgets than last year, the most common reasons cited are an anticipated recession or weaker financial results (51%) and concerns related to cost management (45%).\u00a0Tight labor markets (59%) and inflationary\u00a0pressures (30%) are the most commonly cited reasons for change among the relatively few organizations that are projecting higher salary increase budgets.<\/p>\n<p>\u201cWhile top-line budgets are generally holding steady, the real shift is happening beneath the surface. Organizations are being more deliberate about how they allocate pay, where they focus investment and what outcomes they expect to drive. Employers are no longer simply reacting to economic signals; they\u2019re reimagining how to best support broader business goals despite uncertainty,\u201d said Brittany Innes, director, Rewards Data Intelligence.<\/p>\n<p>Despite stable pay increases, employees are staying put. Fewer organizations this year have found employee stability challenging compared to the past two years. Less than one-third of organizations (30%) report difficulty attracting or retaining employees, representing a decrease of 11 percentage points since 2023.<\/p>\n<p>In response to market conditions in which turnover is relatively low and burnout and disengagement remains a concern, organizations have taken a number of actions to support their workforce, including improving the employee experience (47%), enhancing health and wellness benefits (43%) and increasing training opportunities (40%).<\/p>\n<p>Additionally, employers are adjusting compensation programs to address the competitive labor market and inflationary pressures. These actions have included conducting a compensation review of all employees (50%), performing a compensation review of specific employee groups (48%), hiring people higher in relevant salary ranges (45%) and raising starting salary ranges (40%). Over two-fifths of organizations (43%) have enhanced their use of retention bonuses or spot awards and 37% have targeted base salary increases for specific employee groups.<\/p>\n<p>As organizations focus on these efforts, they continue to wrestle with higher annual payroll expenses. The average annual payroll expense increased by nearly 4% (3.6%), and 7 in 10 organizations report total annual payroll expenses higher than last year.<\/p>\n<p>\u201cAs employers navigate continued economic uncertainty, ongoing increases in labor costs and the changing needs and expectations of employees, they are positioning themselves for what is to come and making investments in their workforces that go beyond pay raises. These include career development, wellbeing, flexibility and equity\u2014because these are critical for performance, retention and resilience in a shifting market,\u201d said Lori Wisper, managing director, Work &amp; Rewards.<\/p>\n<p>\n        <strong>About the survey<\/strong>\n      <\/p>\n<p>The Salary Budget Planning Report is compiled by WTW\u2019s Rewards Data Intelligence practice. The survey was conducted from April to June of 2025. Approximately 29,128 responses were received from companies across 157 countries worldwide. In the U.S., 1,569 organizations responded.<\/p>\n<p>\n        <strong>About WTW <\/strong>\n      <\/p>\n<p>At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.<\/p>\n<p>Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success\u2014and provide perspective that moves you. Learn more at wtwco.com.<\/p>\n<p>\n        <strong>Media contacts:<\/strong>\n      <\/p>\n<p>Ileana Feoli<br \/><a href=\"https:\/\/www.globenewswire.com\/Tracker?data=W0AVnApUgcfKjcPtW7tdJk0ErFkFTa8tBuDCBGywSToa_cx57GxZ974tSf6pJGWxmke-JmvJCDYSQP5I4sPse6o_k3kSJbkFL28AtfzERrQ=\" rel=\"nofollow\" target=\"_blank\">ileana.feoli@wtwco.com<\/a><\/p>\n<p>Stacy Bronstein<br \/><a href=\"https:\/\/www.globenewswire.com\/Tracker?data=p4G6obhK4tVDl3Jn0EPexPiL7TNueM56ivNWaODStBkt3CUwNS990EUztYwEPcQRyi7nvxVyxeQtuyRlhP7vojMdHn2tkZUxUJ4ktjYq6Bu9FG_vEorM8BvQAbM4zYWW\" rel=\"nofollow\" target=\"_blank\">sbronstein@meritcomms.com<\/a><\/p>\n<p>      <img decoding=\"async\" alt=\"\" class=\"__GNW8366DE3E__IMG\" src=\"https:\/\/www.globenewswire.com\/newsroom\/ti?nf=OTQ5MDk2MiM3MDM3NjI2IzIwMTA4MTE=\" \/><br \/>\n      <br \/>\n      <img decoding=\"async\" alt=\"\" src=\"https:\/\/ml.globenewswire.com\/media\/NzY5N2Y5ZGYtNTA2My00NDcxLWI3MzUtNWMxMGM3N2EzYzlmLTEwMjIzODQtMjAyNS0wNy0wOC1lbg==\/tiny\/Willis-Towers-Watson-US-LLC.png\" \/>\n    <\/div>\n<div class=\"mw_contactinfo\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>NEW YORK, July 08, 2025 (GLOBE NEWSWIRE) &#8212; Average salary increase budgets for US companies in 2026 are expected to remain stable at 3.5%, matching 2025\u2019s actual increases. This is according to the latest Salary Budget Planning Report by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. Three out of five organizations saw their salary budgets change in the last pay cycle. More than half (53%) of these organizations reported no change between their anticipated and actual pay budgets in 2025. For the nearly one-third (31%) of these organizations that are projecting lower salary increase budgets than last year, the most common reasons cited are an anticipated recession or weaker financial results (51%) and concerns related to &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Most US employers not budging on budgets, salary increases remain flat&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-867517","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Most US employers not budging on budgets, salary increases remain flat - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Most US employers not budging on budgets, salary increases remain flat - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"NEW YORK, July 08, 2025 (GLOBE NEWSWIRE) &#8212; Average salary increase budgets for US companies in 2026 are expected to remain stable at 3.5%, matching 2025\u2019s actual increases. This is according to the latest Salary Budget Planning Report by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. Three out of five organizations saw their salary budgets change in the last pay cycle. More than half (53%) of these organizations reported no change between their anticipated and actual pay budgets in 2025. For the nearly one-third (31%) of these organizations that are projecting lower salary increase budgets than last year, the most common reasons cited are an anticipated recession or weaker financial results (51%) and concerns related to &hellip; Continue reading &quot;Most US employers not budging on budgets, salary increases remain flat&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-08T15:12:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.globenewswire.com\/newsroom\/ti?nf=OTQ5MDk2MiM3MDM3NjI2IzIwMTA4MTE=\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Most US employers not budging on budgets, salary increases remain flat\",\"datePublished\":\"2025-07-08T15:12:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\\\/\"},\"wordCount\":598,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.globenewswire.com\\\/newsroom\\\/ti?nf=OTQ5MDk2MiM3MDM3NjI2IzIwMTA4MTE=\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\\\/\",\"name\":\"Most US employers not budging on budgets, salary increases remain flat - 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This is according to the latest Salary Budget Planning Report by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. Three out of five organizations saw their salary budgets change in the last pay cycle. More than half (53%) of these organizations reported no change between their anticipated and actual pay budgets in 2025. For the nearly one-third (31%) of these organizations that are projecting lower salary increase budgets than last year, the most common reasons cited are an anticipated recession or weaker financial results (51%) and concerns related to &hellip; Continue reading \"Most US employers not budging on budgets, salary increases remain flat\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/","og_site_name":"Market Newsdesk","article_published_time":"2025-07-08T15:12:25+00:00","og_image":[{"url":"https:\/\/www.globenewswire.com\/newsroom\/ti?nf=OTQ5MDk2MiM3MDM3NjI2IzIwMTA4MTE=","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Most US employers not budging on budgets, salary increases remain flat","datePublished":"2025-07-08T15:12:25+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/"},"wordCount":598,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/#primaryimage"},"thumbnailUrl":"https:\/\/www.globenewswire.com\/newsroom\/ti?nf=OTQ5MDk2MiM3MDM3NjI2IzIwMTA4MTE=","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/most-us-employers-not-budging-on-budgets-salary-increases-remain-flat\/","name":"Most US employers not budging on budgets, salary increases remain flat - 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