Maintaining competitive pay is an important piece to the hiring puzzle as employers aim to manage costs while competing for skilled workers. Top candidates want to be paid fairly and in line with their experience, local market, and broader compensation trends. Even as some employers hire cautiously, the right compensation strategy remains a critical factor to attracting and retaining talent.
A Starting Point for Smarter Pay Decisions
For employers evaluating whether their pay is keeping pace, the Compensation Trends Report offers a starting point for informed salary conversations. With minimum, average, and maximum salaries for professional-level job titles in key industries, this report can help companies gauge how their pay offers compare to market expectations.
- Accounting and Finance
- Human Resources
- Engineering
- Information Technology
- Sales, Marketing, and Creative
- Supply Chain and Logistics
Why Competitive Pay Matters Now
Employers are experiencing a compensation environment marked by restraint. Salary budgets are stabilizing, but companies still face pressure to stay competitive, particularly for roles where talent is difficult to find or costly to replace. That makes the Compensation Trends Report (U.S.; Canada) a valuable tool for developing effective compensation strategies in line with nationwide trends.
Some U.S. employers are hesitant to hire but are paying more for talent. Thirty-six percent of companies gave “peanut butter raises” this year—across the board increases, rather than merit-based raises—and around a quarter are losing talent due to pay, according to a Payscale report.
Canadian employers are also balancing competitiveness with economic caution. A survey from Mercer found 4% of companies gave across the board raises, while most are taking performance, market rates, and pay equity into account. New pay transparency legislation may also influence how employers and candidates discuss compensation in Canada.
WorldatWork data shows actual salary increase budgets for 2026 and projections for 2027. In 2026, U.S. companies increased salary budgets by a mean of 3.6% across job categories, while Canadian companies reported a mean increase of 3.5%. Projections for 2027 are expected to match this year’s actual increases.
AI’s Growing Role in Shaping Compensation
Compensation planning is becoming more complex as technology changes the skills workers need and the roles employers hire for. Leaders should consider how AI-driven changes may affect pay structures, job roles, and the value of specialized skills. These shifts may influence which roles command higher pay, which skills become more valuable, and how compensation evolves as job responsibilities change.
US Hiring Decision-Maker Expectations:
- 64% of U.S. hiring decision-makers say implementing AI tools/technologies would allow them to reduce their workforce size by needing fewer workers
- 86% believe new jobs will emerge to offset roles eliminated by AI in their field/industry
Canadian Companies Expectations:
- 73% of Canadian hiring decision-makers report a significant increase in reliance on AI tools over the last year
- 49% believe implementing AI tools/technologies would allow them to reduce their workforce size by needing fewer workers
- 76% also believe new jobs will emerge to replace roles eliminated by AI
Respond to Compensation Pressure
- Benchmark current pay structures against market and industry data
- Consider strategic merit-based increases rather than across-the board raises
- Evaluate total compensation packages, including benefits, perks, and incentives
- Prepare for conversations involving pay transparency and pay equity
- Communicate how compensation decisions are made
As expectations and trends change, compensation decisions will require more than across-the-board adjustments. By benchmarking pay, evaluating total compensation, and understanding changing trends, companies can make strategic decisions to support hiring and retention.
About Express Employment Professionals
At Express Employment Professionals, we’re in the business of people. From job seekers to client companies, Express helps people thrive and businesses grow. Our international network of franchises offers localized staffing solutions to the communities they serve across the U.S., Canada, South Africa, Australia, and New Zealand, employing more than 11 million since its inception. For more information, visit ExpressPros.com/Employers or ExpressPros.ca/Employers.
