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Staying within the existing 3% budget and granting a one-time inflation offset cash award of 3% helps to minimize avoided the long-term effect of the large pay increase.

Sal DiFonzo, managing director, compensation and rewards consulting at Gallagher, and a member of WorldatWork’s Compensation Advisory Council, said the most salient trend he saw this year was the increase in merit budgets from 3% to now between 4-5%. 

.; In a 6-3 vote, the U.S.

Access a bonus Workspan Daily Plus+ article on this subject: Two TR Leaders Provide a Personal Take on Their 2026 Priorities; WorldatWork’s 2026 findings are based on the survey responses (from Oct. 27 through Nov. 21) of 290 TR leaders, including: ;Directors or senior directors (37%); ;Managers or senior managers (27%); ;Vice presidents (senior or assistant) (15%); ;Consultants/analysts/specialists (11%); ;Chiefs or heads (6%); ;Other titles (3%); Respondents represented a diversity of: ;Organization sizes ;500 to 2,499 employees (29%); ;2,500 to 9,999 (27%); ;20 to 499 (18%); ;20,000 or more (16%); ;10,000 to 19,999 (8%); ;Less than 20 (3%);; ;And, geographic regions;;United States (41%); ;Canada (14%); ;Europe (excluding the United Kingdom) (8%); ;U.K. (8%); ;India (8%); ;Asia (excluding India) (7%); ;Latin America and the Caribbean (6%); ;Middle East (4%); ;Africa (2%); ;Oceania (2%);; “TR leaders recognize that rewards programs must directly support organizational

Psychological Bulletin 117(3): 497-529.

. ($976.50 USD per course) Add to Cart COURSE (1 OF 7) Total Rewards Management for Benefits Success View Details COURSE (2 OF 7) Regulatory Environments for Benefits Programs View Details COURSE (3 OF 7) Strategic Communication in Employee Benefits View Details COURSE (4 OF 7) Retirement Plans: Design Considerations & Administration View Details COURSE (5 OF 7) Health and Welfare Plans: Strategic Planning and Design View Details COURSE (6 OF 7) Health and Welfare Plans: Plan Types & Administration View Details COURSE (7 OF 7) Benefits

Jumbo Claims Drive Up Stop-Loss Costs Advances in medical technology and treatment options , as well as the continued pervasiveness of costly conditions, are moving health costs and medical claims higher — which, in turn, is ramping up stop-loss premiums, a trend observed on multiple fronts: ;Employers saw a 29% increase in claims for $1 million or more per million covered employees in 2024 compared to the year before — and a 47% increase in claims totaling $3 million or more, according to financial services company Sun Life.; ;2025 stop-loss rate renewal increases through Voya Financial were double the amount of 2024 increases, with the company citing a spike in the number of claims in the prior year.; ;There was a 9.4% increase in average stop-loss premiums in 2024 among health plans tracked by Segal, with that increase rising to 11.5% for employers maintaining comparable coverage to the prior year as opposed to adjusting their coverage to reduce premium costs.; The

According to Kastle, San Jose, California had the lowest return-to-office rate last week, at 41.1%— though it increased 3 percentage points from the week before.

The WGA also got t5%-4%-3.5%, but notes in its summary of the Memorandum of Agreement that “some minimums and rates increase less, mostly by 3% each year, while a few rates increase only once or do not increase over the contract.

In the below figure, consider: Lines 1 and 3 reflect the ratio of pay received by the interim CEO vs. the former CEO.