WTW sees US 2027 salary increase budgets steady at 3.4%

Firms leaned on higher hiring ranges, retention bonuses and higher starting pay to secure key talent as budgets stayed in the 3% range.

Employers shifted toward targeted, performance-led pay; 33% already are changing compensation programs, while 15% are planning changes.

Retention stayed steady, with 69% of employees remaining, and only 22% of companies added headcount, signaling limited hiring-led growth.

Willis Towers Watson forecast 2027 US salary increase budgets at 3.4%, little changed from 2026’s 3.5% outturn.

Cost control pressures, a tighter labor market and inflation concerns kept pay planning cautious; nearly 60% reported no gap between planned and actual 2025 budgets.