Compensation Exposure Diagnostic · 2026
● Free diagnostic · 10 questions · 3 minutes

Where is your pay
structure exposed?

Answer ten questions about your own organisation. Every answer is scored against real Philippine payroll data, and you get a profile showing exactly where your compensation structure is carrying risk you may not be able to see yet.

📈 Built on Sprout BenchMark: 135,279 real payroll records, not survey responses
135,279
payroll records
945
industry × function segments
4
exposure dimensions
3 min
to your result
See the 2026 data first
0 of 3
job levels beat inflation
2.37→2.31×
the pay ladder flattened
Scroll to begin
How it worksThree minutes, four dimensions

Most HR teams don't have a data problem.
They have a "what do I do about it" problem.

Anyone can get an average salary for a role in ten seconds. Nobody can tell you whether your structure is exposed, or what to fix first.

A market median is not a diagnosis

It tells you what other people pay. It does not tell you whether your own band has quietly stretched to a six-fold spread, or whether your promotion differential still justifies the accountability that comes with it.

The risk is invisible from the average

In 2026, several industries looked flat at the midpoint while their bottom decile fell and their top decile rose. If you only watch the middle, the movement that predicts attrition is the movement you cannot see.

Knowing is not the same as acting

Every result here ends in specific next steps: something to verify, produce, monitor, or compare. No generic advice, and nothing that requires a sales call to be useful.

The four dimensions you'll be scored on

Real-wage exposure

Whether your increases are keeping pace with what actually happened to prices.

Structural compression

Whether the gaps between your levels still justify the step up.

Pay visibility

Whether you can see movement inside a band before it becomes attrition.

AI repricing readiness

Whether your pay structure reflects how AI is already changing what roles are worth.

Most organisations score lowest on visibility. It is the dimension that makes the other three invisible until they show up in an exit interview.
The diagnostic

Ten questions about your organisation

Each answer is compared against Sprout BenchMark payroll data as you go. Nothing is gated, and your result appears at the end.

Compensation Exposure Diagnostic
Question 1 of 10
Chapter 1Sprout BenchMark · the 2026 pay picture

Everyone got a raise.
Almost nobody got richer.

Inflation fell to a nine-year low of 1.7% in 2025, then reversed hard. The January to May 2026 average landed at 4.5%.

Measured against that benchmark, every job level in the Sprout BenchMark payroll base lost purchasing power. Rank-and-file employees came closest to holding ground, and even they fell short by roughly eight tenths of a point. Managers and officers landed near minus two and a half.

Nominal increase vs. inflation, by job levelAll three negative
Manager pay change by percentileBottom decile fell 2.01%

The average manager increase of 2.15% conceals the real movement. The bottom decile of managers took a nominal pay cut, while the upper quartile advanced 3.09%. The band is stretching, not rising.

The pay ladder flattened at every rung

In the Sprout BenchMark records, entry-level pay rose fastest at 3.68% while manager pay barely moved at the median. The consequence is that the multiple between each level narrowed, whether or not that was anyone's intention.

Manager : Rank and File
2.37×2.31×

Median pay ratio, compressing

Manager : Officer
1.70×1.67×

Median pay ratio, compressing

Officer : Rank and File
1.40×1.38×

Median pay ratio, compressing

If managing a team pays 2.31 times rank and file instead of 2.37, and carries materially more accountability, the internal case for accepting promotion weakens. That connects directly to retention and succession risk.
Chapter 2Sprout BenchMark · where the movement is

The action is at the edges,
not the middle.

Averages in the most knowledge-intensive industries look unremarkable. Split the Sprout BenchMark distribution and the picture changes completely.

−4.72%
bottom decile, professional services
+6.16%
top decile, same industry
10.9 pp
divergence in a single year
+0.64%
software development increase
Bottom decile vs. top decile pay change, by industryOpposite directions in four of six
Headcount change by job function, 2025 to 2026Whole sample grew 6.2%

The junior rung is being repriced

In Professional, Scientific and Technical Services the top decile gained 6.16% while the bottom fell 4.72%. Inside software development, legal, and product management, the tenth percentile fell while the ninetieth rose. The tasks entry-level professionals were hired to perform are the tasks generative tools now handle, and the market has stopped paying a premium for that rung.

Headcount moves before pay does

Media and Communications shrank 13.8% while its top decile gained 15.2%. Fewer people, paid more, concentrated at the senior end. Software development stayed flat in a sample that grew 6.2%, losing workforce share, and received the smallest increase of any major function at +0.64% while still paying 54% more than customer support.

The AI premium in the Philippines is large and already priced in. What is happening now is consolidation, not expansion. A 3.27% raise on ₱29,197 is ₱955. A 0.64% raise on ₱48,528 is ₱310. The peso gap still grew.
Chapter 3Sprout research · what pay position predicts

Where someone sits in the range
predicts whether they stay.

A Sprout study across more than 1,000 Philippine companies tracked attrition, tenure, absenteeism, and unproductive hours by salary percentile. The pattern is consistent enough to plan against.

Attrition falls almost twofold as you move up the salary range. Employees below the 25th percentile leave at 14.23%. Above the 75th, that drops to 7.26%. The middle two brackets sit close together at 11.43% and 11.08%, which means most of the retention benefit is concentrated at the two ends.

Read that alongside the 2026 Sprout BenchMark finding and the implication is uncomfortable. The cohort whose real wages fell furthest is the same cohort that already leaves at nearly double the rate of the top quartile.

Where someone sits in the range shapes how long they stay, how often they are absent, and how likely they are to leave.
Monthly average attrition rate by salary percentileBottom quartile: 14.23%

The clearest relationship in the dataset

Attrition declines at every step up the salary range, and the drop between the third quartile and the top quartile is the steepest single move: from 11.08% to 7.26%.

Pay position is not the only driver of turnover, but it is the one you can model, budget for, and act on before an exit interview happens.
1.96×bottom quartile leaves at nearly twice the rate of the top
3.82 ppthe single steepest drop, third to top quartile
Average employee tenure by salary percentileLongest at the bottom

Tenure and attrition tell different stories

The lowest-paid quartile has both the highest attrition and the longest average tenure at 4.33 years. Those two facts coexist because the bracket contains two very different populations: people who leave quickly, and people who stay for years because the alternatives are limited.

The middle brackets are the most mobile, at 3.33 and 3.23 years. That is the group most likely to move for a modest raise, and the group whose pay moved least in 2026.

4.33 yrslongest average tenure, bottom quartile
3.23 yrsshortest, third quartile
Monthly average absenteeism rate by salary percentileHighest at the top

Absenteeism is not a simple pay story

Absenteeism does not decline with pay. It is lowest in the second quartile at 10.03% and highest above the 75th percentile at 18.44%. The likeliest explanation is that these are two different behaviours wearing the same label: financial strain at the bottom, and greater flexibility to take leave at the top.

Treating absenteeism as a single number to be minimised will lead you to the wrong intervention for at least one of these groups.
10.03%lowest rate, second quartile
18.44%highest rate, top quartile
Monthly average unproductive hours by salary percentileSecond quartile is the outlier

One bracket behaves differently from all the others

Unproductive hours sit between 35.6 and 36.2 per month in three of the four brackets. The 25th to 50th percentile is the exception at 20.88 hours, roughly forty percent lower than every other group.

Whatever is happening in that bracket is worth understanding rather than assuming. It is the one place in this data where a pay position appears to coincide with materially different behaviour.

20.88 hrssecond quartile, per month
~41%lower than every other bracket

Retention, tenure, absenteeism, and unproductive-hours figures are drawn from Sprout's salary benchmarking study covering more than 1,000 Philippine companies over the January to December 2023 period. Salary movement figures are from the 2025–2026 payroll base described in the methodology below.

Chapter 4The five profiles

Five ways a pay structure
ends up exposed.

The diagnostic scores four dimensions and names the weakest one. That weakest dimension is the profile, because it is the constraint that makes everything else harder to fix.

Your weakest dimension is not a grade.
It is the thing to fix first.

Flying Blind

Your biggest exposure is not what you pay. It is that you cannot see what is happening inside your own bands. Everything else stays a hypothesis until percentile movement is visible.

Falling Behind The Floor

Your structure is sound. Your absolute numbers are losing a race against prices. The most fixable of the five, and the most time-sensitive.

The Flattening Ladder

You pay competitively at every level. The problem is what sits between them. Shows up first as declined promotions, later as resignations.

The Repricing Blind Spot

Your pay structure still reflects what roles were worth before AI entered the workflow. The gap compounds fastest in the functions where adoption is deepest.

Ahead of the Curve

You read your own structure accurately and price against a market most organisations cannot see. The risk here is complacency rather than exposure.

Which one are you?

Ten questions. Three minutes. No email needed to see your result.

MethodologyWhat the benchmarks are built on

Real payroll records.
Not stated intentions.

Two datasets sit behind this diagnostic. Here is what each one covers, and where each one stops.

01

Salary movement

January 2025 – May 2026
Records in the job-level base135,279
Industry × function segments945
Records behind industry cuts70,956
Minimum segment size publishedn ≥ 30

Figures are weighted by headcount. Segments below the minimum size are excluded rather than reported with wide error. Outsourcing and staffing employers form a substantial share of the industry sample, so that view leans toward the sector.

02

Retention behaviour

January – December 2023
Companies in the study1,000+
Measures tracked by quartile4
Attrition spread observed14.23% → 7.26%
Tenure spread observed3.23 – 4.33 yrs

Attrition, tenure, absenteeism, and unproductive hours come from a separate, earlier study. It is used here to show how pay position relates to behaviour, not to describe 2026 conditions.

Inflation basisPhilippine Statistics Authority figures: 1.7% for full-year 2025, and a 4.5% average across January to May 2026. All real-terms comparisons use the 4.5% figure.
Statutory floorEntry-level figures reflect minimum wage rates in force during the study period. NCR rates have since been revised upward, so the floor in your market has already moved again.
What this cannot tell youWhether a movement reflects the same people paid differently, or a different mix of people hired. Treat the figures as market conditions, not individual pay histories.

A salary figure is not
a diagnosis.

Ten questions, four dimensions, and a benchmark built from real payroll records. Finish it and take the one-page summary with you.

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© 2026 Sprout Solutions · Compensation Exposure Diagnostic · sprout.ph