Employers looking to stay competitive should focus on the wage trends that affect their own neighborhoods, not just the national averages. ADP’s August 2026 Pay Insights report adds new local‑pay data for 56 metropolitan areas, breaking down both base and gross pay by worker mobility, demographics, sector, employer size and pay quartile.
Metro areas with the strongest year‑over‑year base‑pay growth
The report identifies eleven metros where base pay grew the fastest compared with the prior year:
- Hartford‑West Hartford‑East Hartford, Connecticut
- Grand Rapids‑Wyoming‑Kentwood, Michigan
- Kansas City, Missouri‑Kansas
- Miami‑Fort Lauderdale‑West Palm Beach, Florida
- Omaha, Nebraska‑Iowa
- Orlando‑Kissimmee‑Sanford, Florida
- Rochester, New York
- San Diego‑Chula Vista‑Carlsbad, California
- San Jose‑Sunnyvale‑Santa Clara, California
- Seattle‑Tacoma‑Bellevue, Washington
- St. Louis, Missouri‑Illinois
Across the country, base pay rose 3.2% for all workers, while gross pay – which includes bonuses, commissions, tips, overtime and other earnings – increased 4.7%.
Why the distinction matters
Base pay reflects contracted salaries and tends to show lasting changes in compensation. Gross pay adds variable earnings and can signal short‑term incentive strategies. Understanding both measures helps business owners gauge whether wage pressure is a temporary surge or a longer‑term shift.
Using the data to guide hiring and retention
Strong base‑pay growth in a metro area often signals heightened competition for talent. Employers in those regions should review the compensation packages for the positions that are hardest to fill. If starting salaries lag behind local trends, candidates may gravitate toward competitors offering higher base pay.
Conversely, faster gross‑pay growth can indicate that employers are relying on bonuses or commissions to attract workers. In markets where base pay is stable but gross pay is climbing, businesses might consider variable‑pay plans rather than across‑the‑board salary hikes.
Who is benefiting?
The report also lets employers examine pay gains by worker mobility. Are job‑changers seeing larger increases than employees who stay put? Are certain sectors – such as technology, health care or construction – experiencing sharper wage growth because hiring is especially tight?
Answers to these questions can help companies target their talent‑strategy investments. For example, if data show that skilled workers in a particular sector are receiving higher wages, a business might focus on upskilling its existing staff or offering non‑salary incentives like flexible schedules, career‑development programs or enhanced benefits.
Beyond wages: a holistic approach
Pay is only one piece of the talent puzzle. When compensation budgets are tight, employers can still compete by emphasizing work‑life balance, clear career pathways, training opportunities and robust benefit packages. As artificial intelligence reshapes many occupations, ADP’s research notes that only 24% of respondents strongly agreed their education prepared them for today’s job market, highlighting a clear need for ongoing skills development.
Regularly reviewing local wage data, comparing it to the compensation offered for critical roles, and adjusting strategies accordingly can reduce turnover risk. Employees who see their pay fall behind market rates are more likely to leave, especially high performers in hard‑to‑fill positions.
Takeaway for local businesses
Local wage data provides a clearer picture of the talent market than national averages alone. By focusing on the specific metros where they operate, business owners can make informed decisions about when to raise base salaries, when to lean on variable pay, and how to supplement compensation with other attractive job features. The goal is not to chase every wage movement, but to understand the forces driving those trends and to respond strategically.
Original reporting: KTVZ (Central Oregon) — read the source article.
