Good morning!
For many, the start of a new year can mean the start of performance review and raise season. But recent ADP data shows the share of U.S. workers receiving bonuses has been falling since 2021.
Less than 40% of employees received a bonus last year, down from 44% in 2021. And in 2024, the average bonus payout was $1,786, down from $1,857 a year earlier, according to the study.
That’s not the only pay-related trend to watch in 2026. Pay transparency will also be a hot topic this year, said ADP Chief Talent Officer Jay Caldwell. In June, counties in the European Union will be required to comply with new pay transparency laws, mandating salary disclosures in job advertisements (much like many U.S. states).
“This all of the sudden is becoming less of a hypothetical and very real for companies,” Caldwell said. “They have to adapt to the requirements of their local jurisdictions. I think the trend here is going to be action.”
In the EU, if large employers find a gender pay gap of 5% or more, they will be required to conduct an audit to fix the disparity. Caldwell predicts 2026 will bring increased investments in the HR compliance space. HR leaders should make sure they have the “right automation in place” to help them more easily adhere to these new laws, he says.
“I think that’s the fundamental challenge: More and more organizations are getting more global and more dispersed, operating in more states and more countries,” Caldwell said. “Employers will have to be very disciplined in the management of it.”
Kristin StollerEditorial Director, Fortune Live [email protected]
This story was originally featured on Fortune.com
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