300 HR and compensation leaders surveyed. One clear picture: the tools teams rely on are holding them back. See what the data reveals about how organizations plan, budget, and manage comp in 2025.
of organizations still use performance ratings in merit cycles
say their tools make it difficult to adapt comp programs to business needs
rely primarily on manual spreadsheets for compensation planning
more likely to report no obstacles when using dedicated comp software
Key findings
Compensation planning is a key strategic driver
More than half of organizations consider comp planning a strategic priority, not just an operational function. Yet most lack the tools to execute on that priority effectively.
Merit cycles take five weeks or longer
Just 19% of teams complete merit planning in under four weeks. With cycles running 5 to 8 weeks or more, the opportunity for efficiency gains is significant.
HRIS modules are the primary planning tool
Nearly half of organizations rely on their HRIS as the primary comp planning tool, while only 10% use dedicated compensation software. Spreadsheets remain the backup for 29%.
Pressure to improve is nearly universal
Almost every organization feels pressure to improve their comp review process. But 91% find adapting their current tools to business needs difficult or very difficult.
What's inside
Aeqium is a compensation planning platform built for rewards leaders, finance teams, and people managers. Customizable workflows replace the common frustrations of spreadsheet-based reviews, improving accuracy, collaboration, and security throughout the process.
By integrating with your HRIS, equity management, and performance tools, Aeqium brings together everything needed to assess compensation, budget effectively, and align pay decisions with company goals.
See how total rewards teams use Aeqiumreduction in prep time and errors for people teams
of dedicated software users report limited data access as an obstacle
of dedicated software users report no obstacles at all
more likely to be obstacle-free vs. the average respondent
Free download
33 pages of survey data on how 300 senior HR and compensation leaders manage merit cycles, budgets, tools, and off-cycle adjustments.