WorldatWork Research Shows Key Shifts in Pay, Benefits and Culture

What’s the current state of total rewards (TR)?

Findings from WorldatWork’s latest Total Rewards Inventory of Programs and Practices (TRIPP) Study show that several core programs are holding steady, while some are shifting in levels of investment.

Published in late November, data from the ninth annual report found:

• Market-based pay adjustments remained the primary approach to base compensation.
• Annual cycles continued to be the preferred cadence for performance reviews.
• Training focused on diversity, equity and inclusivity (DEI) dropped 20% from 2023.

The WorldatWork study, which reflects TR programs and practices for the 2025 plan year, covered 15 categories, including compensation, benefits, well-being, career development and recognition. A total of 3,571 responses were received, representing U.S. organizations of different sizes and across multiple industries. Participants included TR practitioners, non-consultant/non-academic practitioners and consultants on behalf of a client.

Workspan Daily recently interviewed Annie Lee, WorldatWork’s director of research and insights, and Alicia Scott-Wears, one of the association’s content directors, about the findings and how this research can help TR practitioners understand and improve their rewards offerings.

WD: What are some of your biggest key takeaways from this year’s report?

Lee: Across performance, compensation and recognition, we’re seeing some noteworthy shifts. Organizations continue to dial back on more frequent review cycles: Both quarterly check-ins and formal periodic reviews declined, while traditional annual reviews remain the dominant practice. Recognition programs also remain grounded in length-of-service awards and appreciation events, with peer-to-peer recognition showing up more often in the tech sector. On the compensation front, market-based adjustments are still widely used for base pay, and geographic pay adjustments have held steady. At the same time, holiday and weekend pay saw declines.

On the retirement and benefits side, defined contribution plans remain the anchor of the U.S. retirement system, with pre-tax and post-tax deferrals consistently high for at least the past four years. Defined benefit plans continue to fall — larger employers are far more likely to offer additional retirement-related programs such as nonqualified deferred compensation plans, retiree healthcare benefits and health savings accounts (HSAs) for retirement use. Paid parental leave continues its upward trajectory, now adopted by 77% of organizations, a 31% increase since 2016.

Development and workplace practices show broader differences across organization types. Large and publicly traded employers continue to lead in tuition reimbursement, succession planning and self-development tools. Learning modalities (both virtual and classroom) are now nearly universal. In terms of workplace flexibility, hybrid or remote work arrangements were available to at least some employees in many of the surveyed organizations, while compressed workweeks, seasonal schedules and relocation lump-sum payments all declined.

These patterns help organizations identify where their rewards package may be competitive, where they may be underinvesting and where the broader market is shifting away from certain programs.

Health reimbursement arrangements (HRAs) have seen a notable rise, increasing from 27% of organizations in 2023 to 42% in 2025. 

WD: What is an example of a TR area that increased in usage in 2025? And, why did interest grow in that area?

Scott-Wears: Health reimbursement arrangements (HRAs) have seen a notable rise, increasing from 27% of organizations in 2023 to 42% in 2025. I think employers and employees alike are finding value in HRAs; they enable employers to manage healthcare costs without compromising coverage quality while giving employees flexibility to select plans that meet their needs. They are also tax-advantaged, so employer contributions are tax-deductible and reimbursements to employees are tax-free. In a labor market where flexibility and personalization are highly valued, HRAs may be a meaningful differentiator.

WD: What is a TR area that declined in usage in 2025? 

Scott-Wears: DEI-focused programs declined from 57.7% of organizations in 2023 to 37.4% in 2025. I believe this reflects a strategic repositioning rather than abandonment. I think many employers are integrating DEI principles into broader leadership, compliance and culture-building initiatives, with a shift toward embedding equity into everyday business practices. 

WD: How might this report help employers better understand and improve their TR offerings?

Lee: Organizations can use this report as a benchmarking reference to understand where their offerings align with today’s most common TR practices and where opportunities may exist within their employee value proposition (EVP).

To translate these findings into action, organizations can pair the benchmarking data with the Total Rewards Inventory Tool, which provides a comprehensive checklist across recognition, careers, well-being, benefits and compensation offering. When combined with internal data, such as employee interest and program cost, the TRIPP Study and companion inventory tool offer organizations a structured, evidence-based approach to optimize their TR strategy and strengthen their overall EVP.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Benefits
• Employee Compensation
• Total Rewards