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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: Finance and Budgeting;Sales Compensation ;

The survey also found 55% of participating employers expect layoffs in 2026, citing AI (44%), reorganization/restructuring (42%) and budget constraints (39%) as the top drivers of employment actions.; ;93: The percentage of recruiters who said they plan to increase their use of AI in 2026, according to new LinkedIn research , released Thursday, Jan. 7.

Labor costs are the largest portion of the operating budget in most organizations—which means Total Rewards professionals influence bottom line results in an important way.

Journal of Management Inquiry 15(3): 219–234.

Other key findings suggest a benefits alignment gap in several areas: ;80% of surveyed employers expect benefits budgets to increase in 2026, but most increases are modest, driving greater selectivity and focus on outcomes.; ;60% of employers and 52% of polled employees believe existing benefits are only somewhat or not at all aligned with current needs, highlighting a clear gap between investment and potential impact.; ;Utilization and understanding of benefits remain a challenge , with employees citing difficulty understanding benefits (27%), accessing information (23%) and navigating complexity (23%), highlighting why benefits often fail at the moment of need.; ;46% of employees expect formal employer support during major disruptions.

Check out Workspan Daily ’ s on-site coverage of Total Rewards ’26: There Is a Distinct Power in Knowing What Matters to Your Workers;WorldatWork, HRCI Leaders Kick Off Program Exploring Work’s New Era;Why Bravery Is a Formal Habit HR Pros Need to Build and Lean Into;Cha-Ching: How to Transform HR into a Profit Center; Check out Workspan Daily pre-conference coverage on Total Rewards ’26: Conference Session Takes Community Approach to Solving HR Problems;BIG Ideas: Learn How to Get the Most Out of a Small HR Budget and Team;Recognize that Employee Recognition Needs Some Attention;Hard Choices, Soft Solutions: A Considerate Approach to Compensation;Making the Leap to a Pay-for-Performance Approach That Works;Are You Speaking Gen Z’s Language When It Comes to Total Rewards?

“We’ve seen innovative ways they’re doing that through professional development budgets, teamwide training, just space within the month to month of allowing them dedicated time to read a book or watch a webinar,” she said.

As a result, “most budget processes are not making room for incremental spend on sales and marketing, yet sales leaders will still be tasked to grow revenues and share,” said David Schottland, a partner at Bain & Co.’s customer strategy and marketing practice.

If wage hikes aren’t in the budget or can’t fully address the issue, however, benefits designed to help employees with essential living expenses — such as housing costs — can be an effective alternative and strategic contributor to the employee value proposition.

.; 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 Compensation; ;Employee Recognition; ;Equitable and Diverse Workplaces; ;Finance and Budgeting; ;Organizational Performance; #1 Total Rewards & Comp Newsletter Subscribe to Workspan Weekly and always get the latest news on compensation and Total Rewards delivered directly to you.