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 Stoller
Editorial Director, Fortune Live Media
kristin.stoller@fortune.com
Around the Table
A round-up of the most important HR headlines.
Some tech companies are enacting a “no-shoes” policy in their offices to make employees more comfortable. New York Times
Employers are using a variety of stealth tactics to entice workers to return to the office, including tying promotions to attendance. Wall Street Journal
Job seekers are using dating apps like Hinge or Grindr to land internships or job interviews. Bloomberg
Watercooler
Everything you need to know from Fortune.
Meet the non-compliers. High-value skilled employees are ignoring return-to-office mandates—and they have the leverage to get away with it. —Nick Lichtenberg
Entry-level nightmares. Bank of America CEO Brian Moynihan says the bank only hires about 2,000 from a pool of 200,000 applications. —Ashley Lutz
Four-day future. Some top business leaders think the five-day workweek is dead, and here’s why. —Preston Fore
