REBA Inside Track: Information is power in the face of rapidly shifting social trends
Clear insight into trends that will cause change both within an organisation, as well as broadly across an economy, is crucial for business leaders.
While not all trends will affect all reward and benefits strategies evenly, being aware of predicted shifts will aid agility, adaptability and action.
The Benefits Trends for 2025 Research, conducted by REBA in partnership with Barnett Waddingham, delves into the top macro trends commonly top of mind for CEOs. It also includes high-level issues keeping human resources teams on their toes, such as the tight UK labour market and incoming legislation.
By delving into the data, the research points to how reward and benefits strategies and spend are adapting – or could morph to adapt – to gradual business and societal transformation, as well as where more immediate needs will be pulling focus in 2025.
Digital transformation
High on business agendas is digital transformation, from the use of robots and artificial intelligence (AI) to create products and services, through to the digital tools employees use in their daily jobs.
These are spurring on demand for new skills, removing jobs to automation and creating more complex human roles.
Within reward and benefits departments, digital shifts are afoot as platforms evolve and providers reimagine how to administer, measure and communicate pay and benefits.
While AI is still in relative infancy in this space, advancements are under way that are already starting to affect delivery.
This research indicates that more flexible pay strategies will increasingly be used to support behavioural change linked to business transformation. It also shows that ongoing flexibility will continue to transform how, when and where people work.
With a tight labour market, increased diversity of employee needs, as well as an ageing workforce, the trend is gradually moving away from one-size-fits all working patterns.
Engaging younger generations
Demographic population shifts show up strongly in this research as a driver of change for businesses, but more especially for benefits.
What is notable, however, is that, for most employers, the immediate pressure to engage younger generations currently outweighs the focus on older workers. This reminds us that, while being aware of future trends is important, acting on the here and now to meet current objectives is still vital for most.
A third major cause of change will be new legislation.
The Employment Rights Bill 2024-25 has been announced, with a new pensions bill waiting in the wings as this research is being compiled.
Interestingly, in the former, there are threads of greater flexibility in working practices, more rights and pay transparency for increasingly diverse workforces, and greater support for sick employees.
While the increased costs of delivering these improvements is of concern to some employers, they are often sector specific. For many, these changes bring organisations that are lagging behind closer to the better practices of the majority.
