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A side from the cost impacts of GLP-1s and price inflation, Miller said there are other areas with potential healthcare cost increases: ;M ental health , which has experienced heightened interest and use with the virtual care setting ; ;C ertain cancer treatment s , especially expensive hospital-based drug infusions ; ;E xpanded use of specialty medications , either from new medications or applying existing medications to a broader set of conditions . ; ; Mercer: ‘A Tough Balancing Act’ According to preliminary responses from 1,800 U.S. employers in Mercer’s 2024 National Survey of Employer-Sponsored Health Plans , total health benefit cost per employee is expected to rise 5.8% on average in 2025.

Automating old and outdated rewards programs may provide some minor gains in productivity, but organizations that first take the time to modernize their job architectures, consolidate their job catalogs and simplify their incentive programs, to name a few, can then leverage AI to perform more sophisticated analytics that result in meaningful insight.

Long work hours with low pay and no protection for working children evolved into federal and state wage-and-hour laws, which are the cornerstone of the modern working world.

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“The modern leader is expected to balance strategy with people development in a much more integrated way than in the past.”

Higher paydays for interns could be part of a strategy by some employers to incentivize in-office work for college graduates set to enter the workforce.

.; “Freelancers are essential to running modern companies as they fill skill gaps, smooth out surges and keep costs flexible,” said Shekar Nalle Pilli Venkateswara, a senior director of work of rewards at WTW.

One place to start is gaining an understanding the psychology of the modern workforce to create compensation packages that truly motivate and engage them.

From Audible’s set of physical, mental and financial well-being principles to Hilton’s organizationwide “Courageous Conversations” that encourage belonging, data can help fuel a total rewards strategy based on broader employee needs and culture strengths.

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