5 compensation and benefits trends to buy into in 2025
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Amid low unemployment levels and a growing skills gap, employers are retooling their compensation and benefits strategy to attract and retain workers. In 2025, compensation budgets are expected to remain above historical trends, and benefits will become even more personalized, experts say.
Josh Bersin, CEO of human capital advisory firm The Josh Bersin Co., said companies will need to ask themselves what deal they offer to workers and how their employee experience compares in the battle for talent.
“As we move into 2025, rising demands for inflation-adjusted pay, greater flexibility (with remote working as a standard expectation), and persistent labor shortages may force organizations to reevaluate their entire benefits stack,” Bersin said.
Experts shared with HR Dive their predictions for the year ahead on the compensation and benefits front.
1. Salaries will remain steady
Ruth Thomas, pay equity strategist at Payscale, a compensation software and data company, predicts wage growth will remain steady, driven by economic conditions, inflationary pressures, increased transparency expectations and continued competition for skilled workers.
To that end, employers said they expect to increase their compensation budgets by 3.3% for merit increases and 3.7% for total salary increases for nonunion workers in 2025…
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