The research, part of the annual Talent, Trends and Pay Survey report conducted with over 330 senior HR professionals, reveals that 85% of businesses increased pay in 2026, with respondents reporting an average increase of 3.5% across all sectors. The average employee can expect a pay increase of about 3.1% in 2027, with 83% of businesses expected to increase pay in 2027. Minimal respondents indicated any expectation of basic wage decreases in 2027.

Over a third of companies (35%) plan to increase their headcount in 2027, down from 37% forecasted for 2026 and 41% for 2025. Most new hires will continue to be for permanent roles, rising to 92% in 2026 from 89% in 2025. The primary drivers of additional headcount are increased production and demand for services (81%), business expansion into new markets (74%), and building a future pipeline of talent (56%).