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At Total Rewards Asia Summit Singapore 2025, senior leaders from Carousell, LAPP, and Omnicom Media Group explored how organisations can design sustainable rewards strategies without losing sight of business realities or their people. Umairah Nasir reports.
The closing panel on Day 1 of Total Rewards Asia Summit Singapore 2025 gathered a mix of C-suite leaders to unpack how organisations are rethinking compensation models amid economic uncertainty, shifting talent expectations and cost pressures.
The conversation featured Sarah Ho, Head of Rewards, Organisation Development and People Services at Carousell, Sampatkumar Aratti, Chief People Officer, APAC at LAPP, and Chloe Neo, CEO, Singapore at Omnicom Media Group; moderated by Aditi Sharma Kalra, Editor-in-Chief at Human Resources Online.
The discussion centred on how to build resilient reward strategies in high-cost markets, with reflections on trust, transparency and culture playing just as big a role as budgets and benchmarks.
Planning for sustainability in a high-cost environment
A key challenge raised was how organisations are rationalising hiring and planning for sustainable workforce structures. Companies are moving away from automatic backfills and encouraging managers to plan headcount one or two years ahead, especially with AI and automation influencing workforce needs.
Some are also reviewing performance structures to support investment and divestment decisions. For instance, labels like “off track” are now used to help managers act early on development gaps. There is also an emphasis on shifting from a flat reward method to a more deliberate allocation such as deciding who receives limited reward dollars and why.
One speaker summed it up clearly: “Cost is something you can control, but revenue is hope.”
This planning mindset extends to business partnerships, where HR teams are working more closely with leaders to explore creative solutions, from adjusting bonus designs to rethinking location strategies.
Trust, not tactics, drives long-term success
The panel stressed that the ability to have honest conversations about salary growth and limitations starts with trust. In one example, the leadership team shared both good and bad news with employees through regular business updates, including clear communication around bonus potential and performance expectations.
Companies that invested in transparency during past crises, such as COVID-19, found that trust carried forward. Employees stayed, even when bonuses were lower, because the company had “walked the talk.”
“Share good or bad news as soon as possible,” one speaker said. “It will work provided your employees trust you.”
Alongside financial clarity, small but symbolic actions such as joining employees on the shop floor or wearing the same uniform were highlighted as ways to strengthen connection and build a culture of mutual respect.
Reward strategies shaped by listening
With younger generations forming the majority of some workforces, the demand for transparency, credibility and flexibility is growing. Panellists highlighted the importance of creating an ecosystem that supports openness, backed by tools like engagement surveys, wellness platforms, and peer-to-peer recognition.
Some organisations are involving employees in co-creating rewards through focus groups and segmentation by profile, age or needs. Others are tracking benefit usage to ensure offerings are relevant and meaningful. In one example, low utilisation of leave prompted a rethink of whether offering more leave days was truly valuable or whether the same investment could be redirected into something more impactful.
Modular compensation is still limited in practice. While there is some variation based on market and role type, offering fully customisable packages remains uncommon. The concern raised was around whether managers are equipped to handle conversations when two employees doing similar work receive different structures.
“How do you help people navigate difficulties?” one speaker asked. “If your people managers cannot even do a PIP conversation, how are they going to navigate a conversation around why two people are doing the same thing, but paid differently?”
Long-term thinking, short-term pressures
When asked about long-term incentives, the panel agreed that not all investment is financial. Some organisations offer overseas opportunities to show commitment to career development. Others have replaced standard allowances such as Annual Wage Supplements with performance-linked schemes, supported by extensive communication to ensure employees understand the change.
The value of recognition was also brought to light. Whether through structured bonus plans or simple gestures of appreciation, employees want to feel seen. At one organisation, employees were compensated for a reduction in leave by being paid out the value over several years, a move that strengthened trust and helped manage the transition.
Companies are also grappling with high salary expectations from candidates, while trying to maintain internal pay parity. The recommendation was to return to the business case: calculate whether these expectations are sustainable, and when possible, offer upskilling and ownership opportunities in place of simply meeting a salary number.
Leadership and the road ahead
The panel ended with reflections on leadership succession and the strategic nature of rewards roles today. In fast-moving industries, the ability to adapt and lead transformation is as important as functional expertise. Performance, transparency and credibility were framed as non-negotiables for today’s leaders especially during downturns.
When asked if sharing bad news risks causing people to leave, one speaker said it depends on how the message is delivered and what follows. In their experience, when employees understood the situation, they stayed and in one case, even helped the company turn around a slow start to the year and achieve bonus targets in the final quarter.
The closing message was clear: reward strategies are no longer just about the numbers. They must be grounded in communication, supported by data, and built on the trust that organisations and their people can weather challenges together.
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