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Among organizations utilizing off-cycle increases, Citron said the frequency is as follows: Monthly (2%);Quarterly (14%);Twice a year (27%);Once a year (51%);Other (6%); Preparing for 2025 While budgeted merit and annual increase rates are decelerating, it is important for companies to remain proactive in their compensation strategies, Citron said.

“The idea of Part 2 [of the report] is helping organizations construct a game plan for putting empathy into action,” he said.

Gallagher & Co. revealed that change fatigue now ranks No. 2 among the top five barriers to organizational success in 2025.

If you pay a U.S. employee $50,000, you give them a W-2 and you’re done.

Organizations reported being less likely to modify their long-term incentive (LTI) plans or seek discretionary adjustments (Figure 2).

; 2.

Enhance financial wellness programs with pre-retiree topics such as integrated retirement income projections, Social Security elections, budgeting in retirement, inflation protection, and understanding annuities and withdrawal strategies. 2.

In these sectors, seasonal hiring dropped 2% from 2023 to 2024, and Challenger forecast a further decline this year as e-commerce businesses and logistics providers continue to lean on automation, flexible scheduling and year-round staff to meet fluctuating demand.

.; ;Most companies do, in fact, have a “management reserves the right” clause to handle any unique and unforeseen circumstances that may arise; that type of clause can and should be in the plan.; ;However, a governance committee should be established to handle these unique cases so they are treated consistently and fairly (to the company and the employee), and use clear guidelines.; ;Ensure your legal department is either part of the governance committee or, at minimum, part of the group that establishes the governance committee’s processes.; Lawsuits in the world of sales compensation are becoming increasingly common, especially for large sales forces with significant sales compensation spend.

Models 2 and 4 show how the effects of recognition change according to organizational justice.