Core Insights - US salary budgets for 2026 are projected to remain stable at 3.4%, consistent with the actual increase for 2025, due to regulated inflation expectations allowing for proactive planning [1][3] Salary Budget Trends - Nearly two-thirds of employers (62%) have not altered their projected pay budgets since mid-2025, while 6% are increasing budgets and 21% are decreasing them [3] - Factors influencing budget changes include cost management concerns (36%), anticipated recession or weak financial results (36%), tight labor market (32%), and inflationary pressures (25%) [3] Strategic Compensation Approaches - The traditional method of distributing budgets evenly among employees is shifting towards a more strategic allocation, rewarding those who enhance skills and contribute to financial outcomes [4] - Organizations are focusing on aligning rewards with outcomes, indicating a trend that is expected to continue beyond 2026 [4] Workforce Planning and Governance - There is a notable improvement in governance around pay decisions, with organizations utilizing market data and segmentation more effectively, while also focusing on affordability and internal equity [5] - One-quarter (24%) of organizations report challenges in attracting or retaining employees [5] Employee Retention Strategies - Staff voluntary turnover rates have decreased to 10.1%, with companies prioritizing budget allocation towards retaining critical talent and addressing pay compression [6] - Actions taken for staff retention include enhancing employee experience (50%), increasing training opportunities (43%), modifying health and wellness benefits (42%), providing greater workplace flexibility (35%), and adjusting compensation programs (32%) [6] Labor Market Dynamics - The labor market is experiencing a balance where demand for labor is lower than in previous years, while labor supply shortages persist, leading to expected stability in salary increase budgets [7] Survey Details - The Salary Budget Planning Report was compiled by WTW's Rewards Data Intelligence practice, with approximately 36,960 responses from companies across 156 countries, including 1,876 from the US [8]

Core Insights - The HR industry is facing challenges such as employee engagement crises, the impact of AI on the workplace, and a skills gap between employer needs and employee capabilities [4] - The importance of creating an ecosystem for talent programs that work in conjunction is emphasized [4] - AI is seen as a tool for enhancing recruiting efficiency and cost savings, but HR leaders face challenges in gaining executive buy-in [7][8] Group 1: AI and Workforce Planning - AI was a central theme at SPARK Talent 2025, with discussions on its potential to improve recruiting efficiency [7] - HR professionals are encouraged to adopt predictive modeling technology for workforce planning to address business needs more rapidly [6] - The need for HR to transition from being order-takers to strategic architects of the workforce is highlighted as essential for demonstrating HR's value [9] Group 2: Talent Acquisition and Culture - The future workforce requires talent outliers who can change and reframe existing systems [1] - A supportive workplace culture is crucial for maintaining a confident and productive team [8] - The rise of workplace political conflict is noted, with 64% of U.S. employees experiencing political disagreements at work, which can distract from job performance [12][13] Group 3: Insights from Industry Leaders - Bertrand Dussert from Staples emphasizes the need for talent that can innovate within the workforce [1] - Tabitha Wright from GE Healthcare challenges organizations to define their business goals and create an environment conducive to achieving them [3] - Peter Lynch from Cardinal Group Companies argues that AI can enhance the "Human Advantage" in the workplace [11]

Group 1: AI and Workforce Planning - Organizations must integrate Generative AI into their workforce planning to avoid being left behind, with the main challenge being the initiation process rather than the technology itself [3] - AI can assist in continuous workforce planning, helping organizations adapt to rapidly changing talent needs [6] - The implementation of AI in talent management should focus on organizational values and equity, rather than solely on efficiency [7] Group 2: HR Leadership and Development - The role of HR leaders is evolving, requiring them to take a proactive stance rather than merely keeping up with changes [4] - Hyatt Hotels emphasizes the importance of making decisions with empathy and care, rather than rushing through processes [10] - Collaboration across teams is essential for developing effective people analytics strategies, especially when working with budget constraints [8] Group 3: Misconceptions about AI in HR - There is a common misconception that AI will replace recruiters and dehumanize the hiring process; however, AI is intended to enhance the recruitment experience by alleviating burdens from HR professionals [5] - The focus should be on how AI can support HR functions rather than viewing it as a threat to jobs [5] Group 4: Data and Strategy in HR - HR professionals face significant workloads and must balance various responsibilities while planning for the future of work [11] - The quality of business and people strategies is directly linked to the data and insights that inform them, highlighting the need for effective data management [11]

Core Insights - Employers in the UAE are preparing for significant changes in workforce management as 2026 approaches, focusing on compensation strategies that align with economic growth, digital transformation, and talent retention [2][3] - The Korn Ferry UAE Salary Forecast 2026 indicates a shift from reactive pay adjustments to strategic workforce planning, emphasizing long-term capability building alongside competitive compensation [3][21] Economic Context - The UAE economy grew by approximately 4% in 2025 and is expected to accelerate to 4.5% in 2026, driven mainly by non-oil sectors such as finance, technology, and professional services [10] - Workforce growth in the UAE has risen by 9%, with new business formations increasing by 14%, indicating a vibrant economic landscape [10] Salary Trends - Average salary increases across the UAE are projected at 4.1% for 2026, slightly below Saudi Arabia's forecasted 4.6% increase [4][22] - Specialist roles in engineering, technology, logistics, finance, and accounting are expected to see the strongest demand, driven by sector diversification and digital transformation [6][23] Sector-Specific Insights - Industries anticipated to deliver the most robust salary growth in 2026 include banking, real estate, oil and gas, industrial, and retail, influenced by major investment pipelines and evolving operating models [20][24] - In the banking sector, compensation for heads of wholesale banking ranges from Dhs110,000 to 240,000 per month, with senior relationship managers earning between Dhs50,000 and 70,000 [12][13] Workforce Dynamics - High turnover rates are observed in specialist roles, particularly in sales, finance, accounting, and engineering, as employees seek new opportunities in a competitive market [7][8] - Companies are increasingly focused on building the right capabilities for the future, requiring sophisticated approaches to talent retention and development [8][21] Employee Sentiment - While 52% of workers report satisfaction with their current pay, nearly two-thirds are considering job changes in 2026, indicating a shift in employee priorities towards work-life balance and career growth opportunities [11]

Core Insights - Dayforce, Inc. has launched Dayforce Strategic Workforce Planning, an AI-powered platform aimed at enhancing workforce planning and business outcomes for organizations [1][3][7] - The introduction of this tool is bolstered by Dayforce's acquisition of Agentnoon, which provides a more intuitive and collaborative workforce planning solution [2][4] Group 1: Product Features and Benefits - Dayforce Strategic Workforce Planning allows organizations to streamline planning processes, reducing manual data cleansing and reliance on disconnected spreadsheets [5] - The platform offers a centralized view of workforce and cost drivers, enabling better decision-making and resource allocation [5] - Users can run predictive "what if" scenarios and model organizational shifts, enhancing the ability to forecast skills and costs [5] - The tool promotes collaboration among HR, Finance, and business stakeholders, ensuring alignment with organizational goals [5] Group 2: Market Context and Demand - The current business environment is characterized by rapid AI transformation and increasing demands for innovation and efficiency, creating a need for advanced workforce planning technology [3][4] - Organizations are seeking tools that can provide a holistic view of their workforce, including various worker types such as frontline, knowledge, corporate, contingent, and gig workers [4][6] Group 3: Strategic Implications - The integration of Agentnoon's technology into Dayforce's platform is expected to enhance the overall user experience and provide significant value to customers [2][4] - The platform is designed to empower Chief Human Resources Officers (CHROs), Chief Financial Officers (CFOs), and Chief Information Officers (CIOs) by aligning workforce plans with financial outcomes and simplifying technology landscapes [5][6]