Economic uncertainty drives shifts in pay strategies

But Brittany Innes, senior director, rewards data intelligence, WTW, noted that there is an ongoing shift in how organisations are managing their pay strategies.

“Salary budgets may be holding steady, but the way organisations are using those dollars is changing significantly,” Innes said.

“Employers are moving away from broad-based increases and toward more precise, performance-driven pay strategies that target the roles, skills, and talent segments that matter most.”

According to the report, at least a third of employers are now adjusting their compensation programmes (33%), as well as starting to hire at higher salary ranges (36%).

Other employers are also increasing the use of retention bonuses or spot awards to help secure key talent (34%), as well as raising starting salary ranges (32%).