Companies are planning to increase employee base salaries, with an average budget increase of 3.3% expected in 2027. This change may impact employee compensation.

A majority of companies also anticipate that incentive payouts will be lower than expected, falling below target levels. This expectation suggests a potential shift in how companies are allocating their budgets for employee incentives.

Further details on these expectations and their potential implications are available from the source, providing more insight into the planned changes to employee compensation and incentives.