In 2025, employees are no longer satisfied with one-size-fits-all policies. They expect a human-centric approach—one that recognises their unique needs, much like the tailored experiences they receive from online subscription services.

At the same time, retaining top talent remains a priority, even as businesses navigate economic pressures. Salary budgets are tightening, and the government’s move to tighten flexible work practices, as outlined by the Public Service Commission, may push more organisations toward in-office models.

For HR leaders and CEOs, the challenge is clear: how do we maintain engagement, morale, and productivity in this evolving landscape?

A smarter approach to pay and benefits

One answer lies in strategic, tailored remuneration and benefits, ensuring employees feel valued while also supporting business goals.

If salary increases aren’t feasible, well-designed benefits can play a crucial role in boosting retention and satisfaction.

Salary and remuneration trends for 2025

As businesses plan for the year ahead, remuneration discussions are already underway. Organisations are budgeting cautiously, with projected salary increases of 3-4%, prioritising high performers and critical roles.

For the first time in recent years, these adjustments are expected to exceed inflation, an important point when communicating pay changes.

However, for many organisations, raising salaries may not be viable. In these cases, a structured benefits strategy can help bridge the gap, keeping businesses competitive without overextending financial resources.

Beyond salary: alternative benefits to consider in 2025

A flexible, personalised benefits approach ensures employees feel valued, even when salary increases are modest. Consider these options:

• Office comfort upgrades – Ergonomic workspaces tailored to individual needs.
• Commuter benefits – Helping employees manage rising transport costs.
• Childcare and caregiver support – Supporting working parents and carers.
• Purchased annual leave – Offering flexibility without increasing costs.
• Wellness and mental health support – Gym memberships, wellness retreats, and resilience programs.
• Fertility and family planning assistance – Meeting employees at different life stages.
• Pet insurance – Recognising that ‘family’ extends beyond traditional definitions.

The future of pay and benefits: a human-centric approach

In 2025, leading organisations will move beyond transactional benefits and embrace a personalised approach. Employees are no longer just seeking stability - they want workplaces that recognise them as individuals and proactively support their evolving needs.

To remain competitive, businesses must consider how tailored benefits can complement salary strategies and create a workplace where employees feel genuinely valued.

Looking for guidance?

For insights on building a more personalised remuneration strategy, contact Tim Malcolm, Intepeople People & Capability Lead, to explore how these strategies can be tailored to your business.