Compensation decisions can appear stable from one budgeting cycle to the next, yet the market behind them keeps moving. The U.S. Bureau of Labor Statistics reported that wages and salaries for civilian workers rose 3.2% over the 12 months ending in June 2026. For employers, even gradual movement can make an older benchmark less useful if it no longer reflects current conditions.
That challenge is also visible in salary planning. A WorldatWork survey, covering nearly 17 million employees across 22 countries, found that U.S. salary increase budgets averaged 3.7% in 2025, with respondents projecting a modest decline for 2026. The figures suggest that compensation markets continue to shift even when changes are not dramatic.
