Companies are focusing heavily on profit, which has significant implications for the labor market. In today’s competitive business environment, with such a focus on talent, and ongoing skills shortages, understanding and adapting to pay trends is crucial for maintaining employee morale and productivity.

As we move into 2025, several key trends are emerging that will shape compensation strategies across industries.

Many organizations are prioritizing financial gains, leading to stringent budget constraints. This focus on profit has created a challenging environment where managers feel limited resources are hindering their ability to meet targets, as 84% of hiring managers report facing skills shortages.

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of employees believe their current roles lack career advancement opportunities

of employees want to leave their jobs because a lack of career progression

employees expected a salary increase in 2024, but only 21% received one

employees feel their compensation is not aligned with their responsibilities

employees feel their company is not ensuring consistent transparency in how pay levels and raises are set