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Many CHROs acknowledged annual planning models built on stable assumptions are becoming less relevant.

Why the Old Model Is Under Pressure Traditionally, many U.S. employers treated market data as the most objective and defensible compensation input available.

;How to interpret market data and apply estimating techniques like aging, blending, adding a premium, weighting, modeling and regression analysis.

The research for the global advisory firm’s new reportrevealed employers are largely abandoning traditional jobs and roles in favor of dynamic, skills-based workforce models.

.; A federally proposed $20,000-plus increase in salaried workers’ eligibility for overtime — to $55,068 annual salary — has businesses facing the possibility of increased labor costs while rethinking their business model and staffing levels.

Based on this, he said, 85% of employers are interested in exploring innovative benefit models such as dynamic copayment plans or reference-based pricing.

As employers turn to more skills-based talent models, HR and TR leaders should rethink how rewards occur and how roles, including those considered “new-collar,” are structured and defined.

There’s particular interest in alternative plan designs , WTW found, with 41% of employers currently adopting these models and another 46% planning to do so by 2027.

For example, as is probably well-known to readers of this journal, the value of stock options is calculated for accounting purposes using an option pricing model (most often the Black-Scholes model) incorporating: the current stock price; the exercise price; the expected life of the option; the expected volatility of the stock over the expected life of the option; the expected dividend yield over the expected life of the option; and the risk-free rate over the expected life of the option.

Another model, the challenge-hindrance stress model, further classifies job demands as challenge demands and hindrance demands ( Cavanaugh et al. 2000).