- U.S. Workers Are Pessimistic About Getting Pay Raise or Promotion
- Expect Another Year of Double-Digit Healthcare Cost Increases
- Look in the Mirror: Survey Shows Flaws in HR’s Reputation
- Walmart Rolls Back Its DEI Policies
- 2024 Form 5500 Released for Benefits Plan Report/Return Filings
- Disney Settles Pay Equity Lawsuit Involving Female Workers
U.S. Workers Are Pessimistic About Getting Pay Raise or Promotion
Less than half of American workers (45%) expect to get a pay raise in the next six months, and less than 1 in 4 (22%) anticipate receiving a promotion in the next year. This is according to the latest LinkedIn Workforce Confidence Index, released Nov. 21.
The LinkedIn report pointed to economic uncertainty and inflation, as well as employers’ communicated budgets for pay increases, as likely factors behind survey respondents’ less-than-sunny outlooks. The social media site polled 4,328 U.S. workers from Sept. 21 to Oct. 18 to generate the results.
LinkedIn’s survey for the companion Executive Confidence Index found employers generally see the same picture as employees. Forty-nine percent of U.S. executives said their organizations have recently taken tighter-than-normal stances on doling out pay raises and promotions.
LinkedIn’s Workforce Confidence Index post received more than 300 reader comments, including a particularly salient one from a logistics support coordinator within the financial services industry. This worker wrote: “Post-pandemic shifts and the rapid return to pre-pandemic routines have created significant uncertainty on both sides of the workplace. Negotiation power has shifted to employers as many companies tighten budgets and navigate ongoing changes. While traditional pathways to raises may be limited now, patience and consistent effort will pay off. Historically, these dynamics shift as markets stabilize, opening new opportunities for employees to negotiate better compensation. For now, employees can focus on demonstrating value, building skills and staying adaptable. These efforts not only strengthen the case for a raise but also position employees for future promotions and career growth.”
Expect Another Year of Double-Digit Healthcare Cost Increases
In a recent survey of 348 health insurers, WTW found global medical costs are projected to increase by 10.4% in 2025, matching the rate for 2024 and marking a third consecutive year of double-digit price jumps.
Respondents to the advisory firm’s 2025 Global Medical Trends Survey cited increased utilization of health services, rising pharmacy costs and new medical technologies as primary drivers of overall medical costs.
According to the survey report, the projected growth in medical costs varies by region. In North America, costs are projected to rise from 8.1% in 2024 to 8.7% in 2025, while in the U.S., insurers project a 10.2% increase in 2025, up from 9.3% this year. Costs are also projected to accelerate in Asia Pacific, the Middle East and Africa, while Europe and Latin America will see slower increases.
While the trend may be slightly cooling in some regions, it is projected to remain elevated over the longer term. In fact, over the next three years, 64% of surveyed insurers anticipate higher or significantly higher medical trends globally. The demand for medical care also is not expected to decline soon. Two-thirds (67%) of insurers anticipate higher or significantly higher global demand for healthcare services over the next three years.
“With medical cost increases remaining at double-digit levels, employers will need to manage budget expectations and balance cost increases with data-driven business and health outcomes,” said Linda Pham, a global health and risk leader for WTW’s Integrated and Global Solutions business. “The seemingly never-ending rise in costs poses a constant challenge for employers to take action in order to mitigate these unsustainable increases.”
Look in the Mirror: Survey Shows Flaws in HR’s Reputation
Employees’ relationships with their HR department might best be described as “complicated.” While HR is designed to provide support and advocacy, workers frequently consider the function as a source of anxiety and mistrust.
A recent HR Perception Report by career platform MyPerfectResume found 86% of the nearly 1,000 surveyed U.S. workers said they are afraid of HR representatives, with 85% hesitating to approach HR for work-related issues due to concerns about confidentiality and potential repercussions.
Top reasons employees avoid HR, according to the report, include:
- A lack of approachability: 37% of respondents mentioned HR staff members were unapproachable, contributing to the reluctance to seek help.
- The fear of repercussions: 31% of employees feared negative consequences if they raised concerns.
- A lack of trust in confidentiality: 37% expressed doubt that their issues would remain confidential, while 31% preferred handling problems independently or with their manager.
The data also showed most employees who bring grievances to HR are unsatisfied with the result. Ninety percent of surveyed workers said that when they reported an issue to HR, they felt HR didn’t adequately address it.
Walmart Rolls Back Its DEI Policies
Walmart, the world’s largest retailer and America’s largest private employer, confirmed on Monday, Nov. 25, that it is rolling back many of its diversity, equity and inclusion (DEI) policies, joining a growing list of major corporations (e.g., Ford, Harley-Davidson, Lowe’s, Tractor Supply) that have done the same in the face of pressure by conservative activists.
According to an article on CNN.com, the company will:
- End racial equity training programs for staff.
- Evaluate programs designed to increase supplier diversity.
- Review all funding of Pride and other events.
- Not extend its Center for Racial Equity, a five-year, $100 million philanthropic commitment the company made in 2020 to address root causes of equity gaps in education, health, criminal justice, etc.
“We are willing to change alongside our associates and customers who represent all of America,” Walmart said in a statement. “We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging.”
2024 Form 5500 Released for Benefits Plan Report/Return Filings
The U.S. Department of Labor on Monday, Nov. 25, announced that its Employee Benefits Security Administration (EBSA) joined the Internal Revenue Service (IRS) and Pension Benefit Guaranty Corp. in releasing informational copies of the 2024 Form 5500, Form 5500-SF, IRS Form 5500-EZ, IRS Form 5558 and related instructions online.
The IRS will release paper copies of Form 5500-EZ and instructions for 2024 separately on its website after Jan. 1, 2025.
Federal regulations — sections 104 and 4065 of the Employee Retirement Income Security Act of 1974 (ERISA) and sections 6047(e), 6057(b) and 6058(a) of the Internal Revenue Code — require that pension and welfare benefit plans file an annual return/report regarding their financial condition, investments and operations. Generally, plans file the necessary Form 5500 series return/report along with required schedules and attachments.
Form 5500 compliance is a standard for 401(k) plans, giving an indication of administrative fees plans are paying.
Each form’s instructions include a Changes to Note section highlighting important updates to the forms, schedules and instructions for 2024, including the following changes in Form 5500 and Form 5500-SF:
- A new plan characteristics code, 2Y, for pension-linked savings accounts.
- An update to Schedule SB instructions for certain expected benefits payable in annuity form.
Disney Settles Pay Equity Lawsuit Involving Female Workers
The Walt Disney Company recently reached a settlement in a class-action lawsuit that accused the media and entertainment giant of widespread pay discrimination practices against female employees, according to a news article in the Hollywood Reporter.
Nearly 9,000 workers were part of the lawsuit against Disney, making it one of the largest classes ever suing under an Equal Pay Act claim.
The case, which began in 2019, involved allegations that Disney systematically paid female workers less than their male counterparts for work of equal value. Although settlement details have not been made public, both parties have informed the Los Angeles Superior Court they have agreed to resolve the matter.
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