"While 60% of companies mention AI as part of their job descriptions, only 55% are willing to shell out extra money for those skills in the form of higher salaries, bonuses or even equity in the company. Why? Well, according to the report, there are a few reasons for the discrepancy, including the impact of a tight job market on hiring, coming at a time when businesses are also tightening their budgets."
"51% of the businesses surveyed say their biggest challenge in the current economic landscape is balancing employee pay expectations with budget constraints. It could be that while companies want to pay more, they just don't have the cash."
"Only about 8% of U.S. workers are actually voluntarily quitting, the report finds. And those positions take about 30 days to fill, signaling "reduced churn" and less urgency on the part of companies to compete aggressively for talent."
Companies increasingly demand AI expertise in job descriptions, yet most are unwilling to pay higher salaries for these specialized skills. Budget constraints and a tight labor market drive this disconnect. Fifty-one percent of businesses struggle to balance employee pay expectations with financial limitations. The median base pay increase for 2026 stands at only 3.5%. Additionally, the "job hugging" trend—where employees remain in current positions rather than seeking new opportunities—reduces hiring urgency. With only 8% of U.S. workers voluntarily quitting and positions taking approximately 30 days to fill, companies face less pressure to compete aggressively for talent through higher compensation packages.
Read at Fast Company
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