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But it’s not enough to simply update compensation based on static review periods, especially as worker expectations evolve amid a competitive talent market and greater visibility into the offerings of various employers through employee review and networking platforms.

Additional research indicates the following about the younger workforce: ;Two-thirds of Gen Z workers struggled in the past year with social determinants of health, such as access to nutritious food and safe housing, and almost three-quarters of them believe their employers should help address those challenges.; ;51% of Gen Z, 54% of African Americans and 46% of Hispanics said they could not pay $1,000 out of pocket for an unexpected medical event.; ;Similarly, nearly half of Gen Z and millennial workers said they do not feel financially secure, which is a higher rate than last year.; ;Almost 9 out of 10 Gen Z and millennial employees shared that an unplanned medical cost would derail their financial plans, compared to 56% of Baby Boomers.

Equal Employment Opportunity Commission, for example, held a public hearing to examine the use of automated systems and AI in employment decisions, including the recruitment, hiring, monitoring and firing of workers.

“Ratcheting” salary offers to woo talent, rising inflation and cost of living, greater emphasis on pay equity , and pay transparency laws are all contributing to increased scrutiny surrounding compensation, said Ruth Thomas, pay equity strategist at Payscale.

Meanwhile, employers liked that they didn’t have to worry about expensive accruals or tracking obligations.

For WorldatWork Members Compensation Structure Policies and Practices , research;Salary Budget Planning Guide , tool;How Employers Can Structure and Communicate Appropriate Pay Bands , Workspan Daily Plus+ article;Simplifying ‘Comp-Speak’ for Employees in the Era of Pay Transparency , Workspan Magazine article;A New Way to Evaluate Performance-Compensation Strategy , Journal of Total Rewards article; For Everyone 2025-2026 Salary Budget Survey , research;WorldatWork: 2026 Salary Increase Budgets Project U.S., Global Caution , Workspan Daily article;Structure, Definition, Clarity: The Business Case for Job Architecture , Workspan Daily article;Could Constructive Communication Combat Compensation Challenges?

For WorldatWork Members The Digital Watercooler: Building the Culture Connection Remotely , Workspan Daily Plus+ article;Employing Age-Friendly Work Practices for Multigenerational Workforces , Journal of Total Rewards article;Total Rewards Inventory of Programs & Practices , research;Total Rewards Leader 2026 Priorities , research; For Everyone How to Sustain a Strong Workplace Culture During Rapid Growth , Workspan Daily article;Culture May Be the Antidote to Your Toxic Work Environment , Workspan Daily article;Workplace Friendships Are Critical to Talent Acquisition, Retention , Workspan Daily article;Accessibility and Belonging: The Keys to Employee Retention , Workspan Daily article;A Sustainable Culture for Employees to Thrive In , Workspan Daily article; Amid the strains of a slow job market, artificial intelligence (AI) fears and economic uncertainty, U.S. workers are noting their employer’s workplace culture as a top priority, according

Here’s what surveyed workers in Europe had to say: ;86% believe U.S. corporate culture is influencing European employers more than in previous years.; ;78% believe U.S. corporate practices are a threat to strong labor laws, work-life balance and holiday time off — and 68% favor stronger labor protections in response.; ;76% felt that implementing the “always-on” U.S. work culture would be detrimental to their mental health.; ;34% are concerned about workplace surveillance and productivity tracking — and the same percentage would immediately search for a new job if their workplace followed America’s lead on return-to-office (RTO) mandates , longer working hours, fewer holidays or regular accountability reports.; Access a bonus Workspan Daily Plus+ article on this subject: From Misconception to Motivation: Creating Your Unlimited PTO Policy; “We have people across the pond who are seeing what’s happening here in corporate America and the work world, seeing how employees are

Additional problems exist for the employer.

Among employers surveyed by career tools website Resume.org, almost 60% are using AI technologies in various aspects of hiring, with three-quarters saying it’s led to higher-quality hires.