4 things to know about 2025’s pay raise outlook

One-third of companies across industries have reduced their planned salary budgets for 2025 due to economic uncertainty, according to a survey from Korn Ferry.

While dozens of hospitals and health systems have announced pay raises for employees in 2025, some workers remain pessimistic about the likelihood of seeing a raise in the near future.

Here are four things to know:

1. Most respondents surveyed by Korn Ferry said economic uncertainty has not affected their respective organizations’ planned salary increases. Twenty-six percent said it slightly decreased raises, 7% said it significantly decreased them and 3% said it slightly increased them.

2. Forty-three percent of respondents said their organization plans to give salary increases to at least 95% of its workforce. Nearly 80% of companies will give raises to at least 80% of its employees.

3. Becker’s reported that from December through August, 39 hospitals and health systems announced plans to raise employee pay. During roughly the same period, Becker’s reported that 70 hospitals cut jobs in 2025.

4. Managers are more optimistic than other employees about receiving a raise, according to a LinkedIn News survey of 12,698 U.S. workers conducted in late 2024. Half of managers expected a raise, compared to 45% of directors and above, and 43% of individual contributors.

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