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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

(Gartner 2023) 3.

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

Journal of Retirement 3(3): 96–115.

On Jan. 3, Democratic state senators Liz Berry and Amy Walen, with backing from 16 other Democratic senators, introduced House Bill 1155 into the Washington State Legislature.