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As companies are setting their 2025 budgets — and creating their next five-year plans — now is the time for total rewards professionals and finance departments to put their heads together and craft sustainable strategies that take continued health cost increases into account, according to a new CFO survey by Mercer.

For WorldatWork Members Considerations to Manage the Costs of GLP-1 Coverage , Workspan Daily Plus+ article;Ready, Set, Go: Optimize Your Physical Well-Being Programs , Workspan Daily Plus+ article;Rethinking the Status Quo to Improve Men’s Health , Workspan Magazine article;How to Calculate the ROI on Your Wellness Program , Journal of Total Rewards article;Workplace Well-Being Trends , research; One of the most significant threats to an organization’s health plan budget is chronic, preventable conditions such as Type 2 diabetes.

The hybrid-work model will likely be a natural segue to work hub models, physical spaces where companies can consolidate employees, customers and clients in geographic areas.

Deloitte’s updated Total Rewards Maturity Model can help organizations perform an honest assessment of their rewards offerings and determine the actions (and investments) that will move the organization further along the maturity curve.

Using a computational simulation model, the researchers found burnout costs: ;$3,999 for an hourly non-manager;; ;$4,257 for a salaried non-manager;; ;$10,824 for a manager; and,; ;$20,683 for an executive.; “Companies should view [these findings] less as a cost and more of a need for investment,” said Bruce Y.

A compensation philosophy is a set of guiding principles (usually in the form of a clearly constructed document) that: ;Outlines an organization’s approach to employee compensation; and,; ;Sets out the key rationale for how the organization ultimately determines salaries, equity, variable pay and benefits.; Many HR and total rewards (TR) professionals find it’s much easier to explain the idea of a compensation philosophy than it is to actually complete and implement one.

Instead of relying on information supplied by a vendor, the process of calculating ROI typically involves conducting an actuarial investigation using a cohort analysis, a method of grouping and examining data based on shared characteristics of a specific set of individuals, according to Ihrke.

Theories and Hypotheses We build on relevant theories and develop a set of hypotheses for the implications of the recognition on recipient employees.

Sales leadership faces a unique set of challenges today, including higher interest rates, talent scarcity and lagging digital transformation — all of which threaten to weigh down enterprise growth rates this year.

Let’s move this article forward by level-setting with a few “truths”: ;Harmonization is not about centralization but rather creating the right balance between corporate consistency and divisional flexibility.; ;A structured governance framework with clear steps and decision-makers is essential for successful harmonization of decentralized business units.; ;Standardized platform roles and compensation blueprints create consistency while accommodating necessary divisional variations.; ;Effective change management, including cross-divisional collaboration and executive sponsorship, is critical for successful implementation.; ;Measuring and communicating the business impact of harmonization initiatives reinforces the value of continued alignment efforts.; We will unpack this in the sections to come.