Pay Rise Paralysis + Your 2026 HR Strategy Blueprint

Inside This Issue:

We're heading into planning season, which means you're likely deep in budget conversations, compensation reviews, and strategic roadmapping for 2026.

The timing couldn't be more critical, because new data shows 72 percent of UK professionals are so concerned about tax implications that they won't even negotiate a pay rise with their current employer, yet 78 percent are open to leaving for new opportunities. That's not just a retention crisis; it's a fundamental shift in how employees think about compensation value.

Meanwhile, as we look ahead to 2026, the conversation around HR's role is evolving from administrative support to strategic architect. The expectations are clear: demonstrate measurable impact, master AI fluency, design trust-based hybrid models, and build adaptable systems that can weather constant change. If you're still operating in reactive mode, next year is going to be uncomfortable.

Let's dig into what this all means for your strategy.

Featured Insights:

The EX Forecast 2026: Four Strategic Pillars Defining The Future Of HR

Seventy-two percent of UK professionals say tax concerns will discourage them from negotiating a pay rise, yet 78 percent are actively open to new job opportunities. This creates a dangerous paradox: employees won't ask you for more money, but they'll leave if they don't feel valued.

The fix isn't bigger salary bumps—it's smarter total reward communication. Start by auditing tax-efficient benefits like salary sacrifice schemes and quantifying their real value in transparent Total Reward Statements.

Make internal mobility pathways more visible and lucrative than external job-hopping, and ensure internal promotion offers are competitive with market rates. With global salary transparency regulations coming (hello, EU Pay Transparency Directive), your ability to articulate non-salary value will become your competitive advantage in the talent war.

Read the full article.

Pay Rise Paralysis: Why Your Total Reward Strategy Must Outsmart Tax Uncertainty

Seventy-two percent of UK professionals say tax concerns will discourage them from negotiating a pay rise, yet 78 percent are actively open to new job opportunities.

This creates a dangerous paradox: employees won't ask you for more money, but they'll leave if they don't feel valued. The fix isn't bigger salary bumps but smarter total reward communication. Start by auditing tax-efficient benefits like salary sacrifice schemes and quantifying their real value in transparent Total Reward Statements. Make internal mobility pathways more visible and lucrative than external job-hopping, and ensure internal promotion offers are competitive with market rates.

With global salary transparency regulations coming (hello, EU Pay Transparency Directive), your ability to articulate non-salary value will become your competitive advantage in the talent war.

Read the full article.

From Our Vault

Written at the end of 2022 amid recession fears and tech layoffs, this piece explores whether employee experience is truly strategic or just a "nice to have" when times get tough.

The answer: while financial needs are real, employees also crave autonomy, values alignment, and trust. When trust breaks, relationships become purely transactional—and transactional employees deliver "computer says no" experiences that damage customers and products alike.

Worth revisiting as we head into another uncertain year.

Read the full article.

The Extra Point

Your 2026 Budget Is a Message

Here's something to consider as you finalize next year's budget: employees aren't just looking at the numbers, they're reading the message behind them. Every line item communicates what you actually value versus what you say you value in town halls and strategy decks.

Cutting learning budgets while increasing exec compensation? That's a message. Investing in manager training and mental health support during tight times? That's a different message.

Employees are savvier than ever about interpreting budget signals, and in an era where 78 percent are open to leaving, those signals matter more than your engagement survey action plans.

Before you submit that final budget, ask yourself: what message are we actually sending, and is it the one we want our best people to receive?