08/27/2026
The 2026 projections are in: employers are averaging about 3.5% for wage increases (Payscale, WTW). So what's one of the worst things you can do as a leader? Give everyone 3.5%.
An across-the-board raise feels fair. It isn't. It ignores performance, where someone sits in their range, and how they compare to others in similar roles. Your top people notice, and so do the ones being carried.
Strong compensation decisions start with a plan: solid role benchmarks, a clear pay range, performance, and internal comparisons. Decide the strategy before you decide the numbers.
Do it right, and you build trust and loyalty. Do it wrong, and hello voluntary turnover.
Work happier. Hire happier.