Competitive
Advantage

The market is waiting to see what happens in 2026. You don't have to.

Salary Budgets

Budgeting Smarter for Growth

Companies are still budgeting for growth, but thoughtfully. While median merit increase budgets are holding steady, many organizations are consolidating to fewer merit cycles—cutting waste from ad-hoc adjustments and unplanned bonuses. The payoff? More strategic spending and tighter budget controls heading into next year.

3.5%
Median merit increase budget for 2026, on par with 2025
3x
Increase in companies with a ‘Forward Deployed Engineer’ in the last 12 months
Hot Jobs

Keep pace in the AI talent race

AI and ML engineers aren't the only jobs with growing pay premiums. Other jobs driven by AI-enhancements are surging: Forward Deployed and Go-To-Market (GTM) Engineers are prime examples. Start making space in your budget for these roles with real-time data from Pave.

Retention Risks

Employees are turning down turnover

Employee turnover is down. At private companies we see a small dip in attrition, but public company turnover is down 26% over the past 2 years. Are your people staying because they want to, or because they're waiting for better options in a turbulent job market? Retention doesn't mean loyalty, and the difference may cost you in 2026.

26%
Decrease in public company turnover, from 21.4% in 2023 to 15.9%
2026

Compensation Budget
& Trends Report

The trends are clear. Get the insights into how peers are approaching 2026 budgeting and headcount planning:

0%
Of “Below Expectations’ performers received equity in 2025 promotion cycles
Equity Strategy

Equity must
be earned

Equity practices are growing more conservative, with early career employees getting less equity, and ‘Below Expectations’ performers receiving no equity during 2025 merit cycles according to an analysis of Pave clients using our planning software. The direction is simple: equity is no longer a free lunch.

Pay Transparency

Release the ranges

If you're not including pay ranges in your job postings, you may be losing out on strong candidates. With EU Pay Transparency laws looming, companies need to start scaling their global job pricing programs now to be ready to publish compliant salary ranges.

83.4%
Of companies are already posting or considering posting salary ranges, regardless of state requirements