2025 Salary Trends
As 2025 hits, the consumer sector has multiple priorities to consider. Shifting customer expectations, the acceleration of AI and digital transformation, an unpredictable economic landscape, all warring for attention. As a result, we’re seeing some of the most prominent brands in the US hit stormy waters. Walgreens, Macy’s Kohl’s CVS and even Dollar Tree have announced store closures for 2025.
Those looking to weather the storm require exceptional leadership to compete in such a fiercely competitive environment. But securing and retaining that leadership may not be straightforward. The hiring landscape in 2025 is just as complex as the consumer one. Those hoping to attract the best executive talent this year, need to keep a close eye on hiring trends. One of the most crucial areas to bear in mind is compensation packages.
Our insights come from our market knowledge and talks with clients and industry contacts. This is our assessment of current trends in retail and consumer executive pay.
At DeBerry Search, we support you to build out actionable talent strategies that help you secure top executive talent.
Emerging Compensation Trends in 2025
Base Salaries have Risen
Rising inflation has had an undeniable influence on the economy, in turn impacting both attraction and retention. Companies are proactively increasing base rate salaries to keep up, and we anticipate salary increases of 5-8% in 2025 – above the usual 3-5% range. It’s a tight labor market, so many see this level of increase as necessary to retain the best talent.
Performance Based Incentives
We’re seeing an increase in organizations linking bonuses and incentives to tangible outcomes – growth, expansion, project success. It’s a shift that leads to greater alignment between company goals and leadership performance.
Equity and Long-Term Rewards
There’s been an increase in conversations around stock-based incentives such as performance shares and RSUs. This is becoming a much more common feature in executive-level compensation packages, as it not only drives performance but also greater longevity and loyalty.
Non-Financial Benefits
This remains a popular feature of compensation packages. There is an expectation of flexible working schedules and locations. Access to development opportunities. Also the chance to engage in CSR initiatives is becoming more popular. These non-financial benefits appeal to high-caliber candidates looking for roles that align with their values and aspirations.
Transparency and Equity
Finally, 2025 is bringing with it a heightened focus on pay equity and fairness. More executives are concerned with transparency and compensation frameworks that reward talent and eliminate disparities. Improving transparency and communication around pay practices is going to be crucial over the coming years.
How To Win Top Leadership Talent In 2025
So, if you want to hire executive leaders who will help you navigate a complex economic landscape and growing competition, you’ll need a clear and effective strategy for securing top talent. Here’s our advice on the steps to take during 2025.
Comprehensive Compensation Packages
Competitive salaries aren’t enough to attract the best leaders anymore. Create a transparent package that incorporates performance bonuses, equity, and flexibility.
Place Values Front and Center
More and more candidates are looking to work with organizations that align with their own values. Sustainability, diversity, social value – show people what you stand for to gain a competitive advantage.
Create a Distinctive Employer Brand
If you haven’t already crafted a compelling employer identity, now is the time to do so. Share your culture, vision, leadership ethos, and successes as part of your brand narrative to help attract passive talent.
Work With an Expert Partner
One of the best things you can do in a tight talent market is work with a partner who understands your sector. They’ll help you tap into a deep network of exceptional leadership candidates with the expertise you need.
Final Thoughts
For consumer and retail brands, things will move fast in 2025. With the talent pool contracting, it’s a race to find leaders. They must have the skills to tackle the sector’s challenges, and the vision to inspire a workforce. The executives you recruit this year will shape your responses to those challenges and determine your future success. Securing leaders with the vision to move you forward will need strategic insight and a clear handle on compensation and salary trends.
At DeBerry Search, our team has the expert knowledge, backed up by analytical tools and strategic insight, to help you find the leaders that will drive you forward and reach your goals.
Contact us today for strategic support for your executive search.