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Publication Type
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Supervisor
Publication Year
2025
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Book
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Publication Number of pages
18
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Abstract
This 2025 edition of the Strategic Reward Monitor developed by the Centre for Excellence in Strategic Rewards, presents insights from 38 organisations related to three dimensions: 1. Overall effectiveness of their reward projects/policies and main learnings over the past year. 2. Deep dives into key topics in strategic rewards, including green mobility, diversity, equity and inclusion, pay transparency, and the use of AI.F 3. Trends and actions, specifically the projects member organisations have been working on in 2024, as well as the projects planned for 2025. Looking at the overall effectiveness of their reward policies, only one company considers its reward policies to be effective (and almost half of them consider reward policies to be rather effective). There is clearly room for improvement, related to reward satisfaction among employees, impact of rewards on organisational performance, recognition and fairness. Taking a deep dive into some topics, reward professionals seem to be happy with the support of their reward policies to green mobility (89.5%). Satisfaction drops regarding broader strategic alignment, with only 16% of the respondents considering their reward polices to be aligned with strategy. Key learnings by the member organisations over the recent past include the critical importance of reward communication, the preparation for the EU Pay Transparency Directive, and the growing pressure to balance tight budgets. There is also an increasing push for customised reward solutions, such as flexible mobility and flexible reward plans. In 2025, organisations will prioritise the implementation of the EU Pay Transparency Directive, expand mobility budgets, optimise bonus structures, and modernise performance management. There is also an increased focus on aligning reward structures with sustainability and diversity goals, along with investments in data systems, benchmarking, and flexible reward frameworks. The use of AI in strategic rewards is still very limited to not existing at all. This is, however, something that is expected to increase in the future
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Keywords
Strategic Rewards