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Be Transparent Whether it’s how compensation is determined, what criteria are used for a promotion or why healthcare premiums increased, insufficient transparency can result in a massive blow to trust, said Tamara Rodman, a senior client partner for culture, change and communications at Korn Ferry.

“When talent is scarce and stakes are high, employers are willing to pay a premium for employees who can deliver impact in complex, fast-changing environments.”

If an employee can afford to fund the account during employment, medical expenses, Medicare premiums and certain long-term care premiums can be paid from the account in retirement.

;Important callouts: Employers in states or localities with mandatory PFML may now receive the credit for leave provided in excess of the mandate. … The employer can choose to base the credit on paid wages or private PFML insurance premiums. … The employer can shorten the qualification period to six months of employment, reduced from 12 months.; ;Action items: ;Update current plans to reflect permanency and qualification periods.; ;Consider implementing or expanding paid leave programs to take advantage of the credit.; ;If using private PFML insurance, determine whether to base your credit on wages paid or insurance premiums.; ;Check with state tax conformity laws to ensure proper state taxation.;;; ;Employer-provided childcare tax credit ( Internal Revenue Code Section 45F ).

Once candidates are in a role, 66% of companies offer premium pay (most commonly shift differentials) and short-term incentives to their frontline workers.

;Single/national pay model with premiums.

According to the Internal Revenue Service (IRS), for calendar year 2025, a “high-deductible health plan” is defined under § 223(c)(2)(A) as a health insurance plan with an annual deductible that is not less than $1,650 for self-only coverage or $3,300 for family coverage, and for which the annual out-of-pocket expenses (deductibles, copayments and other amounts, but not premiums) do not exceed $8,300 for self-only coverage or $16,600 for families.

The credit, governed by Internal Revenue Code Section 45S , can be worth up to 25% of the wages paid to employees on leave (or a percentage of paid family leave insurance premiums) under a compliant policy.

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Currently, 41% of organizations apply pay differentials as a premium/discount to either structure or individual pay, and 33% create separate base pay structures for each/different geographic location.