Group 1 - Employers are planning for salary budget increases in 2026, with estimates around 3.5%, a slight decrease from 2025 [3][4] - There is a significant disparity in salary increases between high-wage and low-wage roles, with high-wage salaries rising over 30% since January 2023, while low-wage salaries increased by only 10% [4] - The impact of artificial intelligence (AI) on hiring and compensation strategies is mixed, with 84% of hiring managers indicating plans to offer higher salaries for in-demand skills related to AI, machine learning, and data science [5][6] Group 2 - A recent survey by Mercer indicates that U.S. organizations expect average merit-based salary increases of 3.2% and overall increases of 3.5% for 2026, with most companies planning to distribute these increases evenly [7] - There is a noted disconnect between employers' pay strategies and their broader priorities, such as talent development and market competitiveness, suggesting an opportunity for organizations to realign their budgets towards in-demand skills [7]