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Workspan Daily article; ;How to Change the Performance of Your Performance Review Systems , Workspan Daily article; ;Improve Performance Management with Frequent Communication and Transparency , Workspan Daily article; ;Tips for Adjusting Compensation During Performance Reviews , Workspan Daily article; ;2025-2026 Salary Budget Survey , research; Forty percent of HR professionals said performance management is at the top of their list of priorities for 2026, with engagement right behind it at 39%.

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: Employee Experience; Finance and Budgeting; Organizational Performance;

In February, WorldatWork’s “ Salary Budget Follow-Up Pulse Poll ,” collected more than 250 responses from compensation professionals indicating an average actual 2022 merit increase of 3.7% and 3.5% median; significantly above predictions from months earlier.

For WorldatWork Members Helping Employees Secure Their Retirement Future , Journal of Total Rewards article;Revisiting Retirement Benefits , Workspan Magazine article;Total Rewards Inventory Checklist , tool; For Everyone SECURE 2.0 Act Expands Retirement Savings Options for Lower Income Workers , Workspan Daily article;More Fine-Tuning Ahead for Part-Timer Rules Under SECURE 2.0 , Workspan Daily article;More Finance and Budgeting content; When the U.S.

Workspan Daily Plus article;EU Pay Transparency Rule Promises Big Impact on Reward Policies , Workspan Magazine article;Organizations Slow to Enact Pay Transparency , Journal of Total Rewards article;2024-2025 Salary Budget Survey , research; As pay transparency continues to shine a light into the dusty, sometimes-outmoded corners of compensation practices, many organizations are preparing to widely share salary ranges or pay bands with employees and candidates for the first time.

Global Employers for EU Pay Transparency , Workspan Daily Plus+ article;Checklist for Total Rewards to Be Compliant with H.R. 1 Provisions , Workspan Daily Plus+ article; For Everyone WorldatWork: 2026 Salary Increase Budgets Project U.S., Global Caution , Workspan Daily article;Global Healthcare Costs Projected to Rise More Than 10% in 2026 , Workspan Daily article;Charting the Changes: 2026 Benefit Plan Limitations , Workspan Daily article;2025-2026 Salary Budget Survey , research; Artificial intelligence (AI), agility and culture are top of mind for HR executives as they look ahead to 2026.

It shows up in budget decisions, strategy discussions and how organizations respond to pressure.

| WorldatWork tool;Salary Budget Planning: Using Market Data to Formulate a Recommendation Report | WorldatWork tool; Overlooking market data can unintentionally create disparities that expose the company to legal challenges and harm its reputation.

Just because you might have secured a compensation budget does not mean you should automatically provide annual salary increases and bonus payments on the routine schedule and adhere to the same historic process.

Here are five examples: ;Financial risk arises when overly generous incentives strain budgets, affect profitability or delay progress of strategic initiatives.; ;Talent risk emerges when underpaying top performers leads to high turnover, disengagement or the inability to attract sufficient skills.; ;Regulatory risk involves non-compliance with laws governing employee classifications, pay transparency, deferred compensation or executive disclosures.; ;Operational risk may stem from errors in bonus calculations or misaligned systems.; ;Reputational risk can surface when executive pay appears excessive during periods of poor performance or layoffs.; Of course, it’s also important to recognize the impact of exposing an organization to undue risk through misaligned compensation philosophy.