As I prepare to return from maternity leave, I’ve been taking some time to reflect on the shifts I’ve in the Reward and Recognition space throughout 2024. Working with our clients across the UK, USA and Europe, we at Oakleaf have had a front-row seat to the evolving demands and challenges facing Reward professionals.
By Elizabeth Kerry
Senior Consultant – Specialist Markets
EU Pay Transparency: The Game-Changer
I’ve seen first hand how the EU Pay Transparency Directive has revolutionised our clients’ approach to compensation. Throughout 2024, our team has experienced unprecedented demand for Reward professionals skilled in:
– Implementing robust pay transparency frameworks
– Developing compliant job evaluation systems
– Creating sophisticated gender pay gap reporting mechanisms
Working with our European clients, I’ve observed this trend intensifying as we move into 2025, particularly among UK-based organisations with significant European operations seeking to maintain compliance while retaining their competitive edge.
Banking Remuneration: A New Chapter
The financial services sector, one of our core markets, has undergone significant transformation in compensation structures. Our banking clients have particularly focused on:
– Reassessing variable pay structures
– Integrating comprehensive ESG metrics into bonus frameworks
– Redesigning long-term incentive plans for sustainable performance
Looking ahead to 2025, our financial services practice is seeing increased demand for Reward specialists who can navigate the complex interplay between performance metrics, risk management, and regulatory compliance.
The Labour Effect: Anticipating Change
With a new Labour Government, our clients are proactively seeking guidance on future-proofing their Reward strategies. We are increasingly seeing a need for professionals who can:
– Prepare for anticipated changes in executive pay regulation
– Develop more robust pay equity frameworks
– Design transparent bonus structures aligned with potential new governance requirements
So what does this mean for 2025?
Based on these findings, I am now predicting these skillsets will be particularly valuable in 2025:
1. Advanced data analytics expertise for pay equity analysis
2. Proven experience with pay transparency implementation
3. Comprehensive knowledge of ESG-linked compensation structures
4. Change management capabilities
5. International reward harmonisation experience
Today’s Reward professional must balance technical expertise with strong communication and change management capabilities.
As I prepare to return to work, I’m excited by the dynamic nature of today’s Reward function. The role has evolved from pure compensation management to a strategic business partner position, crucial in driving organisational success and equity.
For those working in or aspiring to enter the Reward space, there’s never been a more exciting time to develop your career.
I’d love to hear your thoughts on these trends. What changes are you seeing in your organisation’s approach to Reward?
Connect with me here on LinkedIn or reach out to discuss your Reward career journey!
