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Workspan Magazine article;WorldatWork’s Salary Budget Survey , research; For Everyone Mercer Projects 3.6% Total Salary Increase Budgets in 2025 , Workspan Daily article;Report: 1 in 3 Organizations Don’t Have a Pay Equity Strategy , Workspan Daily article;Understanding Base Pay-for-Performance and Merit Increase Guidelines , on-demand webinar;Base Pay Administration and Pay for Performance , course; Giving managers discretion in the allocation of merit pay increases can be empowering for both the giver and receiver.

Why the Old Model Is Under Pressure Traditionally, many U.S. employers treated market data as the most objective and defensible compensation input available.

Wipro moved beyond this model, focusing instead on building a well-being system that acknowledged diverse identities, life stages and personal circumstances.

“One of the four building blocks of change management is role modeling — employees will take cues from how their leaders talk about and use AI in their work.

Together, they are building compensation models that are defensible, explainable and aligned with long-term value creation — not just market benchmarking.

When you consider that sales compensation plan models have remained largely unchanged over the past 40 years, it’s no wonder that the plan design process and other plan components are often seen as outdated and inefficient.

Instead, the tool might recommend terms like, “a great model for everyone,” or simply, “a great role model.”

California: New Limits on Stay-or-Pay Contracts Start on Jan. 1 Effective Jan. 1, 2026, California Assembly Bill 692 (AB 692) will limit an employer’s ability to impose repayment obligations for upfront sign-on and retention bonuses, as well as certain other “stay-or-pay” practices (such as tuition and loan assistance programs).

Building Internal Models Some organizations are looking to build internal models backed by artificial intelligence that enable them to automate processes and create behavioral nudges that help leaders and employees make better decisions around skills development.

.; Step 1: Identify Potential Peer Companies Cast a wide net to identify potential peers, including: Direct competitors.