72% of managers want to give a pay rise – but do not have the budgets

A majority of managers (72%) wish to give employees pay rises for their hard work, but over half (25%) report that tight budgets prevent them from doing so. Additionally, 25% of managers anticipate no bonuses this year, and for those offering bonuses, two-thirds expect them to fall short of initial promises.

The findings are from the Robert Walters Salary Survey 2025, which highlights professionals’ compensation expectations. Over half (56%) of employees expect pay raises, and 43% anticipate bonuses. Transparency (56%), faster communication (30%), and employee involvement in decision-making (14%) are key demands from employees.

While businesses face retention challenges, 70% of managers express optimism about improving compensation packages if Q1 performance is strong. Adjusting pay review timelines and enhancing non-financial benefits are suggested strategies to retain top talent in 2025.