Data from WTW and Gallagher surveys suggests that salary increases in 2027 will decline modestly from 2026 levels but remain largely stable. Employers are taking a more cautious approach to salary planning, citing cost management pressures, a tight labor market and inflationary concerns, according to the surveys.
Experts say employers are becoming increasingly strategic in how they allocate pay increases, shifting away from broad, across-the-board raises in favor of targeted, merit-based increases for top performers and employees in critical roles.
Source: SHRM, August 18, 2026. Link. Organizations should be prepared to answer employee questions honestly.
Employees want to know how pay decisions are made . . . Transparency builds trust, even when budgets are tight. And when there’s no money for pay raises, we have to say that too.” – Carrie Cavanaugh
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