Willis Towers Watson Plc Wtw Reports Stable Salary Increase Bu

Bonisiwe Shabane

-Dec 27, 2025, 8:40 PM

willis towers watson plc wtw reports stable salary increase bu

NEW YORK, July 8, 2025 — Average salary increase budgets for US companies in 2026 are expected to remain stable at 3.5%, matching 2025’s 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... Tight labor markets (59%) and inflationary pressures (30%) are the most commonly cited reasons for change among the relatively few organizations that are projecting higher salary increase budgets.

While top-line budgets are generally holding steady, the real shift is happening beneath the surface ” “While 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’re reimagining how to best support broader business goals despite uncertainty,” said Brittany Innes, director, Rewards Data Intelligence. 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. July 08, 2025 11:09 ET | Source: Willis Towers Watson US LLC Willis Towers Watson US LLC NEW YORK, July 08, 2025 (GLOBE NEWSWIRE) -- Average salary increase budgets for US companies in 2026 are expected to remain stable at 3.5%, matching 2025’s 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... Tight labor markets (59%) and inflationary pressures (30%) are the most commonly cited reasons for change among the relatively few organizations that are projecting higher salary increase budgets. “While 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’re reimagining how to best support broader business goals despite uncertainty,” said Brittany Innes, director, Rewards Data Intelligence. 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. Referring to the current political and business environment as a “time of change,” an April report by consulting firm WTW on widescale U.S. policy shifts pointed to American workers’ concern about the state of their anticipated salary increases. In that survey, 56% of surveyed employers indicated their workforces are worried about base pay increases. Respondents tried to temper those fears, even slightly, with 48% stating they anticipated no impact to this year’s projected salary increases but some impact on their 2026 budget, and 28% anticipating no impact this...

With that as a backdrop, WTW released its Salary Budget Planning Report on Tuesday, July 8, which, on its face, could perhaps be summed up as: the more things change, the more things stay... Some complex activities are supporting — and even countering — that smoothness. According to the report, the composite look from 1,569 surveyed U.S. organizations shows average salary increase budgets for 2026 will remain stable at 3.5%, matching American employers’ actual increases for 2025. (WTW had initially predicted 3.7% increase budgets for 2025.) The firm’s expanded outlook report for 2026 reflected similar stability for select countries outside of the U.S. “While top-line budgets are generally holding steady, the real shift is happening beneath the surface,” said Brittany Innes, the director of rewards data intelligence at WTW.

“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’re reimagining how to best support broader business goals despite uncertainty.” WTW’s data points for 2026 projections and 2025 actuals resemble those found in other recently released salary budget survey reports for the U.S. market. Written by None for Quiver Quantitative-> U.S.

companies project average salary increases of 3.7% for 2025, stabilizing post-pandemic trends while addressing retention challenges. The latest Salary Budget Planning Report by WTW reveals that while U.S. organizations are experiencing less difficulty in attracting and retaining employees, salary increase budgets are projected to remain stable, averaging 3.7% in 2025, slightly down from 3.8% in 2024 but still above the pre-pandemic average... Factors influencing budget changes include financial performance and inflationary pressures. In 2024, the average payroll increase was 5.5%, reflecting historic investment in talent, despite a more conservative outlook. Companies are also prioritizing workplace culture, diversity, equity, inclusion, and flexibility, with over half offering varied work arrangements.

Experts suggest that, despite a stabilized labor market, competition for talent remains strong, emphasizing the importance of retention strategies moving forward. The projected salary increase budget for U.S. companies in 2025 is 3.7% on average. Current salary increase budgets remain higher than the pre-pandemic norm of 3%. With most organizations having closed out their annual salary review cycle, the second quarter is the perfect time to begin thinking about the future. Uncertainties about the global economy are prompting organizations to carefully consider how they approach budgeting and workforce strategies.

WTW’s 2025 Salary Budget Planning Report — Global (July edition) offers a comprehensive look at how organizations worldwide have responded this year and how they’re preparing for what’s to come in 2026. While 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... Employers are no longer simply reacting to economic signals; they’re reimagining how to best support broader business goals despite uncertainty and using this moment to position themselves for what’s next. Most countries are forecasting salary increases that are relatively flat compared to the prior year. In the United States, organizations plan to increase salaries by 3.5% in 2026 — nearly identical to 2025 budgets. Canada, France, Germany and the United Kingdom are showing similar trends, with these markets forecasting increases between 3.2% and 3.6% (Table 1).

A glimpse into the actual and projected salary budget increases for a region or industry is critical to help organizations understand where they fall compared to the benchmark — but context is key. To help organizations make this data actionable, the full Salary Budget Planning Report offers insights into the factors influencing budget decisions and how organizations are addressing their workforce strategy. Salary increases for employees are projected to remain stable next year, reflecting a steadier yet potentially volatile economic landscape. According to the Salary Budget Planning Report by Willis Towers Watson (WTW), the average salary increase budget for U.S. companies is expected to hold steady at 3.5% in 2026, mirroring the actual increases seen in 2025. The report highlights that around 31% of organizations plan to reduce their salary increase budgets compared to the previous year, primarily due to concerns over a potential recession, weaker financial performance, and the necessity...

Conversely, the few organizations intending to raise their budgets attribute their decision to a competitive labor market and inflationary pressures. The global survey, conducted from April to June, included responses from 1,569 U.S. organizations. Employers are moving beyond merely reacting to economic signals when it comes to pay allocation, as noted by WTW. They are considering various labor factors, with forward-thinking CFOs evaluating all aspects of pay and benefits to identify which programs resonate most with employees and offer the highest return on investment. Another significant finding of the report is that despite limited pay growth, employee turnover remains low.

Fewer organizations report challenges with employee stability compared to the past two years, with only 30% of surveyed organizations finding it difficult to attract or retain employees, a decrease of 11 percentage points from... More employees are inclined to stay with their current employers, with 62% in 2024 compared to 49% in 2022, and fewer are open to offers, dropping from 22% to 11%. However, nearly 30% are still actively job hunting. Structural factors also play a role, as U.S. Bureau of Labor Statistics data indicates fewer job opportunities are available compared to previous years. Despite millions of open jobs, the premium for changing jobs is lower today than in previous years.

Willis Towers Watson Plc Wtw Reports Stable Salary Increase Bu

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