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But some organizations’ pay designs and philosophies are evolving as they seek to simplify pay design.

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This requires short- and long-range planning, effective system design and constant vigilance aimed at sustaining the viability of those systems.

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Inflation cycles, geopolitical risk, capital constraints, shareholder scrutiny and workforce design led by artificial intelligence (AI) are reshaping executive decision-making.

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These forces are accelerating faster than traditional workforce planning cycles were designed to manage.

“The reason why traditional pay designs have lasted so long is because we know how to operationalize them, and they’ve been easier to fall back on.