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The Merit Cycle State of the Union: H1 2026
Three years of data. 206 companies. 100,000+ employees. See how compensation leaders are navigating tighter budgets, a widening AI talent premium, and a more disciplined approach to who gets raises—and who doesn't.

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The Third Edition—Now With a Trend Line

For the first time, the Merit Cycle State of the Union offers more than a snapshot. Three consecutive years of H1 merit cycle data reveal which patterns have held, which have shifted, and what's driving the change. What's emerged is a clearer picture of how companies are internalizing constraint: making sharper choices about raises, promotions, and equity—and increasingly, letting AI talent dynamics drive those decisions.

What's Inside

Download the full report to learn:

  • Merit cycle benchmarks for H1 2026, including median raise rates, promotion rates, and budget trends across company sizes and functions
  • Why merit budgets have contracted—and where the dollars are actually going
  • How the AI talent premium is reshaping raise and promotion strategy in R&D (and what it means for every other function)
  • The performance differentiation story: where companies are holding the line on cash, and where equity is doing the real work
  • Promotion trends by company size and function—including a notable inversion in how the most in-demand technical roles are being rewarded

More Resources

Pay for Performance Report: Pay Your People With Purpose

The Merit Cycle State of the Union

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