2025 pay trends to watch
Organizations in the tech, media and gaming (TMG) industry are taking a cautious and thoughtful approach to pay, marking a significant shift from previous years.
Employee pay isn’t only important to employees. Organizations also rely on compensation programs to support many objectives. Companies in the TMG industry are focusing on stronger pay for performance connections to optimize spend.
Inflationary pressure, concerns related to cost management and the anticipation of a recession or decline in business results are among the top factors influencing 2025 budget plans. This is a departure from the prevalent concerns of recent years when business leaders were contending with tight labor markets and evolving employee expectations.
As a result, many organizations are preparing for 2025 budget increases that are slightly lower than that of recent years but more in line with the actual spend they made in 2024. As in previous years, salary budget increases in the TMG industry outside of North America and Western Europe are outpacing those in these regions, reflecting the current labor market conditions in these regions.
| Region | Planned increase |
|---|---|
| North America | 3.8% |
| Asia Pacific | 4.9% |
| Central & Eastern Europe | 5.9% |
| Latin America | 4.9% |
| Middle East & Africa | 4.3% |
| Western Europe | 3.7% |
Changing labor market and economic conditions as well as socio-economic trends have increased the pressure on organizations to update their pay programs, according to the results of our 2024 Pay Effectiveness & Design Survey’s global results.
The latest data from WTW’s 2024 Global Compensation Survey uncovers trends in compensation growth across various disciplines within the TMG industry in key markets across Asia, Europe, Latin America and North America. This analysis highlights where the most significant and modest salary increases are occurring, providing valuable insights for both industry professionals and employers. The roles with the fastest-growing compensation vary significantly by region.
Most respondents to the global Pay Effectiveness & Design Survey indicated that they have already made changes or are planning or considering making changes to their base salary structure design through fundamental shifts.
Multiple factors are encouraging increased levels of pay program communication within organizations.
| Pay program communication drivers | Percent |
|---|---|
| Increasing regulatory requirements | 64% |
| Company values and culture | 51% |
| Environmental, social and governance / diversity, equity and inclusion agenda | 51% |
| Employee expectations | 46% |
| HR’s confidence in pay programs | 42% |
| Leadership’s confidence in pay programs | 38% |
International and global organizations generally approach the way they communicate pay program information on an organization-wide basis, with local variation where required.
Employee attraction and retention is one of six core objectives for pay programs in organizations around the world, especially as employees are most likely to say pay is a driver of attraction and retention, according to WTW’s 2024 Global Benefits Attitudes Survey.
| Driver | Percent | |
|---|---|---|
| Attraction | Pay (including bonus) | 56% |
| Job security | 34% | |
| Flexible work arrangements (e.g., working remotely, flexible work hours) | 32% | |
| Retention | Pay (including bonus) | 43% |
| Job security | 39% | |
| Working environment (e.g., location, facilities) | 32% |
Voluntary attrition is highest in Asia Pacific, while voluntary turnover is lowest for Western Europe. Many organizations still report issues with sourcing talent, including reporting a shortage of available labor supply.
| Region | Voluntary attrition rate |
|---|---|
| North America | 8.0% |
| Asia Pacific | 9.0% |
| Central & Eastern Europe | 7.2% |
| Latin America | 7.0% |
| Middle East & Africa | 7.0% |
| Western Europe | 6.3% |
41% of organizations report labor shortages in multiple talent segments.
Globally, software engineers are the most sought-after talent globally, with other technical roles as well as customer service roles also in high demand. Programming and scripting skills are the most in-demand skills. Other technical skills are also in high demand.
| Region | In-demand jobs | In-demand skills |
|---|---|---|
| North America | 1. Software engineer 2. Customer service associate 3. Application developer |
1. Programming / scripting 2. Technical reporting 3. Software development |
| International | 1. Software engineer 2. Solution architect 3. Application developer |
1. Programming / scripting 2. Software testing 3. Technical reporting |
| Europe | 1. Software engineer 2. Customer service associate 3. Account manager |
1. Programming / scripting 2. Technical reporting 3. Project management |
| Region | Largest planned increases | Lowest planned increases |
|---|---|---|
| North America | Real estate | Manufacturing (non-durables) |
| Asia Pacific | Biopharma & life sciences | Retail |
| Central & Eastern Europe | Biopharma & life sciences | Construction |
| Latin America | Retail | Transportation |
| Middle East & Africa | Construction | Transportation |
| Western Europe | Real estate | Retail |
Two-thirds of organizations around the world are already or are planning / considering communicating pay rate or pay range information to job candidates, according to our 2024 Pay Transparency Survey’s global results.
77%
of organizations are more likely to communicate the
hiring rate / range for the job to external job candidates.
56% of organizations apply a consistent approach for all job levels and types to external job candidates.
Organizations with operations in locations with increased legislation tend to apply a more consistent approach across the entire enterprise when sharing pay rates and ranges with prospective employees.
Locations sharing pay rates and ranges with prospective employees:
01
Pay equity and transparency regulations will continue to influence HR and compensation programs, pushing companies to ensure fair and transparent pay structures.
02
Increased demand for tech products and services will drive expansion and investment in new markets, creating more job opportunities and potentially higher compensation to attract and retain top talent.
03
Digitalization and AI will continue to reshape business strategies. New business models will emerge as companies leverage AI to optimize processes, enhance customer experiences and create new revenue streams. Companies will need to focus on upskilling and reskilling employees and attracting new talent with expertise in AI and related technologies.
