DRESHER, PA — After years of whiplash caused by the pandemic, U.S. employers are settling into a steadier phase of compensation and benefits planning, tightening pay strategies while broadening benefits aimed at long-term workforce engagement, according to a new national report.
Ascensus released its 2025–2026 Compensation, Retirement, and Benefits Trends Report, based on a survey of 594 employers across 16 industries. The findings point to a shift away from reactive, crisis-era decision-making toward more deliberate and sustainable “total rewards” strategies as companies plan for 2026.
Ascensus CEO Nick Good said the data show employers moving past the instability of the early pandemic years and adjusting to lasting changes in workforce expectations.
He said companies that cut benefits in 2020 and rebuilt them in 2022 are now offering programs at more stable levels, while placing greater emphasis on the needs of Millennials and Gen Z. Those priorities include retirement readiness, financial wellness, mental health support, workplace flexibility, and assistance with student debt, alongside closer scrutiny of costs.
The report, led by Newport, shows employers adopting a more disciplined approach to pay. Salary increases for 2026 are forecast to range between 3.1% and 3.3%, while nearly 30% of organizations reported making midyear salary adjustments. Short- and long-term incentive programs continue to play a central role in compensation planning.
Retirement benefits remain a cornerstone of total rewards strategies. Nearly all employers surveyed said they offer a qualified retirement plan, with more than half matching employee contributions between 3% and 4.9%, and nearly 30% matching more than 5%. Financial wellness programs are also expanding, with more than three-quarters of employers reporting they already offer — or plan to implement — such initiatives.
The report also highlights a continued focus on executive retention. Nonqualified deferred compensation plans remain widespread, particularly among senior leaders, while rising healthcare costs are prompting employers to shift more expenses to employees and increase reliance on Health Savings Accounts.
Transparency and flexibility are also gaining traction. Two-thirds of employers said they now include salary ranges in job postings, and nearly half reported that their retirement plans feature automatic contribution escalation.
Mike Dunn, president of Newport, said employers are becoming more intentional as they allocate resources for the coming year, balancing competitive benefits with financial discipline to attract and retain talent in a tight labor market.
The full report is available at https://www.ascensus.com.
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