Anxiety about the economy forces two -thirds of American employers

Economic concerns pay the smaller compensation budgets. The report, which is conducting a survey of more than 1500 customers who were conducted in May and June, finds that the respondents expect workers to see that his primary salary is 3.5 % in the next year, on average, by only 0.1 % from this year.

But for organizations that plan to reduce their compensation budgets, economic concerns are looming on the horizon with many years. Among the respondents who said that their budget for 2026 for salaries is expected to be less than their budget 2025, nearly two -thirds (66 %) said they are “concerned about future economic conditions or business performance,” an increase of 17 percentage points from last year.

This is not necessarily surprising given the economic background. Inflation increased by 2.7 % in June, reaching its highest levels since February, and the Trump administration recently imposed Comprehensive definitions On commercial partners, it may hinder companies ’appetite to employ and raise workers’ wages.

These difficult economic conditions have the ability to influence workers, as Ruth Thomas has noticed, large compensation strategies with Payscale. “It will be a really difficult time,” she said. while Data indicate Wage growth now goes beyond inflation, Payscale scann notes that workers “still feel waste from the high level of inflation that we had previously.” She said that the customs tariff may affect the extent of employees spending on goods.

How to deal with a limited budget. When moving in discussions with employees who see an increase in wages from previous years, Thomas recommended “determining the economic context for them”, and explained how industry trends affect compensation budgets. As a result of the transparency of wages, “the employees are more enlightened fans now, so you have to be ready to inform them.”

The organizations also encouraged the use of their budget to increase wages “in a distinctive way” in light of the fact that they may have been the least for several years. Instead of increasing the granting of 3.5 % in all areas, employers must think about “main talent”, especially if they are in a sector with low demand for employment, such as technology.

Thomas said that human resources should consider “the talent that will lead to the shift in your work next year, because it will be the main talent that you want to keep, and it is the talent most at risk of your work.”

This was the report It was originally published by HR Brew.

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