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Dive Brief:
Average salary budgets for U.S. companies will likely remain stable in 2027, increasing by 3.4% — slightly lower than the actual 3.5% increase in 2026, according to a new report from London-based advisory and broking firm WTW.
Companies indicated they were taking a cautious approach to salary planning, citing cost management pressures, a tight labor market and inflationary concerns, according to the report.
Employers are moving away from broad-based pay increases and taking more strategic pay approaches, with more than one-third of companies reporting adjustments to their compensation programs, WTW said. That includes providing higher salary ranges and bonuses or spot awards for key employees.
