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It’s no wonder research from consulting firm Mercer found average per-employee costs for health insurance rose 6% in 2025 and are projected to increase another 6.7% in 2026 — making it the highest jump in 15 years.

Salary budget increases and global healthcare cost increases are forcing companies to reevaluate their total rewards packages.

For WorldatWork Members 2024-2025 Salary Budget Survey , research;Mini-Study: Navigating the Living Wage Journey , research;Compensation Programs & Practices , research;Guidance on How to Avoid Common FLSA Classification Errors , Workspan Daily Plus+ article;FLSA Implementation Toolkit , tool; For Everyone Wage-and-Hour Compliance: You Are Either Fine or Fined , Workspan Daily article;A New Year Is Here — and Along with It, Minimum-Wage Changes , Workspan Daily article;How Will Wage Increases for App-Based Delivery Drivers Affect the Gig Economy?

For WorldatWork Members 2024-2025 Salary Budget Survey , research;Engage Community , peer engagement and connection platform;How to Reconcile Internal Pay Equity and External Competitiveness , Workspan Magazine article;Why It’s Time for a Compensation Philosophy Refresh , Workspan Magazine article;A Management Primer on the Basis for Pay Equity , Journal of Total Rewards article; If you find that some of your employees are hovering at the top of their formal salary range , you don’t just want to consider how to handle their annual merit increase — it’s equally important to examine how your overall pay ranges are structured.

For WorldatWork Members How to Communicate Pay Frequency Changes , Workspan Magazine article;Comp Talk 101: Training Managers to Communicate Pay Decisions , Workspan Magazine article;5 Things TR Pros Can Do to Mitigate Pay Transparency Risks , Workspan Daily Plus+ article;Teaching Employees About Pay Helps Avoid Transparency Problems , Journal of Total Rewards article;Compensation Philosophy Guide , tool; For Everyone 2025-2026 Salary Budget Survey , research;WorldatWork: 2026 Salary Increase Budgets Project U.S., Global Caution , Workspan Daily article;A Framework for Fair and Consistent Pay Decisions , Workspan Daily article;Exploring the Merits of the Compensation Conversation , Workspan Daily article;Pay with Purpose: Driving Employee Engagement Through Compensation , webinar; “Pay is personal.”

Top sellers should earn generous upside but not to the degree that it blows out the sales compensation budget.

Access additional Workspan Daily articles from this series: Planning for Healthcare in Retirement: Why Employers Must Step Up ;Take 3 Actions to Help Workers Turn Savings into Retirement Income ;4 Steps to Help Pre-Retirees Consider, Plan for Retirement Income ;Financial Planning Tips Can Help Older Workers Budget for Retirement ; Phased Retirement and Bridge Employment: A Strategic Middle Ground Many employers and employees are rethinking the concept of a “hard stop” retirement.

., adding steps tied to budget or affordability levels, creating flatter slopes around target to avoid steep payout jumps) creates a smoother progression and rewards incremental achievements.

For an optional action, consider allocating the target incentive budget based on the sellers’ rank-order performance.; ;“Disparate impact” sales decline: Consider chartering a quota review board.

This might include managing a large budget, leading a country-specific task force and reporting to the executive team.; Key Components While stretch assignments will vary according to business and employee development needs, there are three main components to consider when using them effectively: ;Alignment with career goals.