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At the recent Inspire HR 2025 conference, the industry expert emphasised that what employees want and expect today is very different from expectations in the past.
We are in the middle of change. Total rewards, therefore, can no longer be static – they must evolve to reflect what employees truly value.
This was emphasised by Ravi Nippani, Partner, Regional Industries and Solutions Leader, Mercer Asia, during his session at the recent #InspireHR 2025 conference.
Mercer’s research revealed that 67% of employees leave organisations due to dissatisfaction with pay, and 50% are unhappy with their current rewards programmes.
Notably, nearly half of employees said they would accept a 10% cut on their pay to work in an environment that better aligns with their personal preferences and values.
As such, Nippani highlighted the growing disconnect between what organisations offer and what employees perceive they are getting.
He went on to explain that today’s employees want more than just a paycheck. They are looking at how they can relate to the organisation's purpose and values, how they are treated as an individual, and whether they are paid fairly and competitively.
“What employees want today is very different. It is no longer just about fixed pay and performance bonuses. It’s about customisation, flexibility, accessibility,” he said.
This shift, Nippani noted, underscores the growing importance of personalisation in total rewards. With up to five generations in the workforce nowadays, each with distinct needs and priorities, a one-size-fits-all approach is no longer viable. From flexible work arrangements to tailored benefits, employees are increasingly seeking customised experiences.
We are seeing organisations allow employees to choose how much of their salary goes into cash, benefits, or investments. That level of flexibility is becoming a differentiator,” he shared.
Another significant shift he has observed is the move from job-based pay to skills-based compensation. As roles become more fluid and cross-functional, organisations are beginning to reward individuals for the unique skills they bring to the table.
“If someone walks in with machine learning capabilities that can transform your business, you pay for that skill – not just the title or the job,” Nippani pointed out.
Technology, he said, is both an enabler and a game changer in this transformation. From data analytics to digital platforms, organisations now have the tools to deliver personalised, transparent, and accessible rewards. At the same time, the adoption of automation and AI is helping employers drive higher revenue per employee.
However, Nippani cautioned that technology alone isn’t enough – transparency and communication are also critical.
“Compensation is no longer a secret. There is enough market insight available for people to know how much they should be paid, especially if you are a generic scale,” he said.
“And what I mean by communication is having a culture where employees understand that these are the three, four yardsticks that you use to define what somebody gets paid.”
He concluded with a call to action: “Total rewards leaders must transform rewards through total rewards optimisation. Through strategic design and customisation of compensation, benefits, and recognition programmes, organisations can optimise employees’ satisfaction, productivity, engagement, and retention.”
Lead image / HRO
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