WTW’s 2024/2025 Global 50 Remuneration Planning Report
Since 2022, compensation management has operated in a fog of strong inflationary pressure (especially in a number of markets that were unaccustomed to it), serving to crowd out other considerations to a degree. On a global basis, however, inflation levels have begun to drop and are projected to further do so in 2025, which may allow employers to look at their compensation offerings with other priorities in mind.
Multinationals regularly look at multi-country labor pools, be it for site selection for new operations, selecting shared services and global delivery center locations, mobility needs or simply leveraging global talent pools. While labor costs typically are one of myriad considerations, the cost of hiring staff into entry-level positions and the cost of retaining them as they process in their careers can be two (very) different things.
As diversity, equality and inclusion (DEI) is a area of continued and growing focus for many multinationals, employers continue to drill down into their various programs and policies to understand how they can be better aligned to their DEI-related priorities. However, the manner in which this manifests in rewards policies globally remains quite variable.
Employers are under increasing pressure to accommodate workforce needs for flexibility, be it to remain compliant as employees' statutory entitlements expand (such as in the EU) or be it to remain competitive. And while - globally-speaking - the majority of employers have adopted formal policies to support such needs, global variance remains substantial.
Understanding and foreseeing human capital needs, supply and availability is fundamental to the health of any organization. While workforce age often is viewed through the lens of young talent availability, that risks disregarding the other side of the coin: older workers who often provide specialized skills, experience, relationships and leadership. And just as understanding what attracts, retains and engages younger workers is critical, it's just as important for older workers, especially as post-retirement considerations (like pensions) start looming larger for them.
