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For WorldatWork Members Incentive Pay Practices , research;Bonus Programs and Practices, research;2025-2026 Salary Budget Survey , research;How to Reward Top Performers When Pay Raises Aren’t Possible , Workspan Daily Plus+ article;Emphasize the Value of Total Rewards During Economic Uncertainty , Workspan Daily Plus+ article;How to Identify the Linkages Between Performance and Pay , Workspan Daily Plus+ article;Volatility-Proofing Your Incentive Rewards Strategies , Workspan Magazine article;Incentives and Recognition: An Evidence Review , Journal of Total Rewards article; For Everyone Total Rewards ’26 , conference;Prioritizing Performance: How Might This Push Impact Pay Strategies?

“People's budgets are stretched, so it's not a leap to read this data and see that people are looking for ways to trim their budget beyond just at the grocery store or gas station,” Spiegel said.

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: Equitable and Diverse Workplaces;Employee Benefits;Employee Compensation;Finance and Budgeting;

Despite many surveys of employer intent still reporting that the “average” employer is budgeting 2% to 3% for pay adjustments (down from slightly over 3% a year ago), a significant percentage of employers cannot fund any increases because of the precipitous decline in their revenues.

Developing Key Compensation Resources In the 1970’s, we launched two bedrock products that established the professional rigor of the compensation function and remain essential mainstays for compensation and Total Rewards professionals today: In 1974 we launched the annual Salary Budget Survey , which every year helps compensation and Total Rewards professionals anticipate and plan their salary budgets for the coming year.; In 1976 we introduced the Certified Compensation Professional (CCP), the gold standard in the field and still the only certification for compensation professionals .

And we have to review budgets, get support from leadership, determine the proper measurements and communicate the plans throughout the company.

In scenarios where the threshold is adjusted downward, it may be prudent to correspondingly reduce the payout at threshold, for instance, from 50% to 25%, to mitigate the risk of sending mixed messages about rewarding management for subpar growth.

An Alexander Group survey found that sales departments are allocating a traditional and modest 3% increase for on-target-earning budgets in 2023.

Shortly before reviewing Workspan plans, I got a preview of the main narrative elements of WorldatWork’s 2024-2025 Salary Budget Survey that will be discussed at a forthcoming digital event on Aug. 13 .

Use that data to develop strategies to either increase utilization and engagement or remove a particular benefit, allowing budget dollars to be spent elsewhere.