These 14 predictions from Dr Mark Bussin, executive chairperson at 21st Century and industrial psychologistDaniela Christos aim to give employers insight into what’s coming this year.
In the rapidly evolving landscape of employee remuneration, the year 2024 marks a crucial juncture. The global dynamics are shifting, presenting both challenges and opportunities for organisations and their workforce. In this article, we will alert you of what 2024 and the years to come are predicted to have in store for us.
The remuneration climate is quickly and continuously changing, forcibly and consistently keeping us on our toes. Just in the past decade we’ve experienced a seismic shift in remuneration with the increased emphasis on pay equity, remuneration for remote work, employee wellbeing, pay transparency, integrating technology in remuneration management, and scrutiny on executive remuneration, among other topics.
A Funnel Effect for Word-Wide Change
The everchanging, unpredictable, naturally evolving state of the world, means that there will never be ‘stability’ and it’s up to us to see ‘instability’ as ‘home’. In 2023 alone we have experienced many significant world-changing events such as wars, earthquakes, and the starvation of more and more people across the globe.
In an era of increasing global interconnectedness, fewer places remain immune to the economic ripples caused by international events. The traditional notion of ‘safe havens’ for employment is a concept of the past, making it imperative for individuals and organisations to adapt to the unpredictable nature of the global economy.
As nations grapple with conflicts, economic sanctions, and shifting alliances, the stability of global markets is threatened. This uncertainty funnels down to the workforce, causing wavering salaries, benefits, and job security.
Current Impacts of World-Wide Change
* How the World is Struggling to Keep Up With Change: While the United Nations’ sustainability goals outline a vision for a better world, progress has been slower than anticipated. The impact of this stagnation on employee remuneration is significant as organisations are compelled to align their remuneration strategies with sustainable practices, facing the challenge of balancing profit margins with social responsibility.
* A Broken Global Schooling System: The shortcomings of the global education system have far-reaching effects on the workforce. Disparities in access to quality education contribute to skill gaps, affecting employability and earning potential. Organisations are prompted to reevaluate their remuneration structures to account for these discrepancies and invest in continuous learning opportunities for their employees.
* We Need to Find Jobs for Another 3-Billion People by the Turn of the Century: The demographic challenge of accommodating an additional 3 billion people in the workforce by the turn of the century demands innovative approaches to employment and remuneration. Striking a balance between economic growth, job creation, and fair remuneration becomes a must, all around the world.
* How South Africa is Impacted: Current stats show that an alarming figure of 42% of South Africans have trouble sleeping. The socio-economic landscape of South Africa reflects a broader global trend. Economic disparities, political instability, and the uncertainty of the future contribute to a significant percentage of the population grappling with sleeplessness. This raises questions about the adequacy of current remuneration models in addressing the needs and well-being of employees.
2024 and Beyond Predictions
* Prediction 1: The World Will See its First Trillionaire – As wealth accumulates in unprecedented ways, the prediction of the world’s first trillionaire is expected to manifest. This raises questions about income inequality and the ethical distribution of resources.
* Prediction 2: The Largest Companies will get Larger – The consolidation of corporate power poses challenges for smaller enterprises and raises concerns about monopolistic practices. How this impacts employee remuneration is a critical consideration.
* Prediction 3: The Wage Gap will Grow Between Developed and Developing Countries – Global economic disparities are expected to widen, impacting the wage gap between developed and developing nations. This has implications for organisations operating in diverse international markets.
* Prediction 4: Average Monthly Salary Gap will Increase Between Africa and Europe – The widening salary gap between continents reveals the need for a more complex approach to remuneration that accounts for regional economic variations and cost-of-living differences.
* Prediction 5: A New Formula will Change the Way we do Remuneration – Innovations in remuneration models, driven by factors like productivity metrics and employee well-being will be needed to reshape traditional remuneration practices. This is where remuneration surveys can help.
* Prediction 6: Cost Cutting will increase – Organisations, faced with economic uncertainties, will intensify cost-cutting measures, impacting employee benefits and discretionary remuneration.
* Prediction 7: AI will Become Exponential – The integration of AI into the workforce will intensify and already raises questions about the future of jobs and the skill sets required, influencing remuneration structures.
* Prediction 8: The Death of Entitlement will Occur – Changing attitudes towards entitlement challenge traditional notions of guaranteed benefits, requiring organisations to re-evaluate their approach to employee perks.
* Prediction 9: Time will be the Most Valuable Resource – As remote work becomes more prevalent, the value of time takes centre stage, prompting a re-evaluation of remuneration structures based on productivity and results.
* Prediction 10: There will be a Fierce Focus on Pay Equity – The call for gender and diversity pay equity will gain further momentum, urging organisations to address disparities and foster inclusive remuneration environments.
* Prediction 11: The Payslip Ban becomes a reality – Growing concerns about inequity may lead to regulations asking for the disclosure of pay slips during interviews.
* Prediction 12: Work Hours will Decrease – As work-life balance becomes a priority, organisations may adopt shorter work weeks or flexible schedules, influencing how remuneration is structured.
* Prediction 13: Restructuring Pay for Remote Work will Continue – The permanence of remote work necessitates ongoing adjustments to remuneration structures, reflecting the evolving nature of the modern workplace. Once again, salary surveys will be able to help companies adjust with the requirements.
* Prediction 14: We will All Start Thinking Like a CEO – A shift towards a more entrepreneurial mindset among employees prompts organisations to explore innovative and performance-based remuneration models.
Conclusion
In the complex tapestry of employee remuneration, the year 2024 and beyond present many challenges and opportunities. From the global impact of global tensions to the funnelled down struggles of individuals, organisations must navigate this landscape with foresight and adaptability.
By addressing the predictions outlined and using a holistic approach to remuneration, businesses can position themselves to thrive in the evolving world of work.