Insights from Mercer’s Executive Outlook for 2025: A Conversation with Susan Potter and Atlanta-area Global Total Rewards Leaders 

Core to the discussion was the importance of focusing on business fundamentals as organizations seek to enhance their Total Rewards programs. In the current economic climate, 72% of executives believe that prioritizing core business functions is essential for sustainable growth. This means that Total Rewards strategies must align closely with organizational goals and performance metrics. Improving existing products or services is one of the three actions that executives say are most likely to increase the overall value of their organization.

Susan emphasized that organizations should look to tie their Total Rewards offerings directly to business outcomes. By integrating Total Rewards with business performance, companies can create a more compelling value proposition for employees, ultimately driving engagement and retention. This alignment is crucial, especially as organizations face pressures to demonstrate the return on investment (ROI) of their Total Rewards programs.

Moreover, focusing on business fundamentals allows organizations to streamline their Total Rewards offerings, ensuring that they are not only attractive but also financially sustainable. This approach encourages organizations to critically evaluate their current benefits and compensation structures, identifying areas for improvement and innovation. By doing so, they can create a more efficient and effective Total Rewards strategy that meets the needs of both the organization and its employees.

The conversation then shifted to exploring new pathways to growth, mainly through innovative Total Rewards strategies. As organizations face unprecedented challenges, 68% of leaders are actively seeking new ways to drive growth and enhance employee value propositions.

Susan emphasized the importance of organizations thinking creatively about their Total Rewards offerings. This includes expanding benefits to encompass not just traditional compensation but also opportunities for professional development, career advancement and perks to meet the unique needs of their employee population.

Additionally, organizations should explore partnerships with educational institutions and training providers to offer employees access to skill development programs. By investing in their employees' growth, organizations can cultivate a culture of continuous learning and adaptability, which is crucial in today’s rapidly evolving business landscape. This focus on growth not only enhances employee satisfaction but also positions organizations for long-term success.

As the workforce evolves, the need for continuous skill development becomes paramount. Nearly 75% of executives recognize the importance of equipping employees with the skills necessary to navigate transitions in the workplace. This is particularly relevant as organizations adapt to new technologies and changing market demands.

Total Rewards leaders are encouraged to incorporate learning and development opportunities into their programs. By offering access to training, mentorship and upskilling initiatives, organizations can empower employees to thrive in their roles and contribute to the company’s success. This focus on skill development not only enhances employee satisfaction but also positions organizations for long-term growth.

Moreover, organizations should consider implementing personalized learning paths that align with employees' career aspirations and organizational needs. By tailoring development opportunities to individual employees, organizations can create a more engaged and motivated workforce. This approach not only benefits employees but also helps organizations build a more skilled and adaptable workforce capable of meeting future challenges.

Finally, the discussion touched on the concept of the longevity economy and its implications for Total Rewards strategies. With an aging workforce and increasing life expectancy, organizations must consider how to support employees throughout their careers and into retirement.

Just over 60% of executives believe that addressing the needs of older employees is crucial for maintaining a competitive workforce. This includes offering flexible retirement options, health and wellness programs tailored to older employees and opportunities for phased retirement. By unlocking the potential of the longevity economy, organizations can create a more inclusive and supportive work environment that benefits all employees.

Additionally, organizations should consider how to leverage the experience and knowledge of older employees. By creating mentorship programs that pair seasoned employees with younger talent, organizations can facilitate knowledge transfer and foster a culture of collaboration. This not only enhances the skills of younger employees but also helps older employees to feel more valued and engaged in their roles.

Effective communication is a cornerstone of any successful Total Rewards strategy. The group stressed the need for organizations to clearly communicate the value of their Total Rewards offerings to employees. This includes not only the financial aspects but also the intangible benefits that contribute to overall job satisfaction.

Total Rewards leaders are encouraged to adopt a transparent approach, helping employees understand the full scope of their compensation and benefits. Regular communication through newsletters, workshops, and one-on-one meetings can help reinforce the value of Total Rewards and foster a sense of belonging among employees.

Moreover, organizations should consider utilizing technology to enhance communication efforts. By leveraging digital platforms and tools, organizations can create more engaging and interactive communication channels that resonate with employees. This approach not only improves understanding but also encourages feedback and dialogue, allowing organizations to continuously refine their Total Rewards strategies.

Recognition plays a vital role in employee engagement and retention. These global leaders emphasized that organizations should cultivate a culture of recognition where employees feel valued for their contributions. This can be achieved through formal recognition programs, peer-to-peer acknowledgment and regular feedback.

The group discussed examples of organizations that have successfully implemented recognition initiatives, resulting in increased employee morale and productivity. By celebrating achievements, organizations can create a positive work environment that motivates employees to excel. Notably, 48% of executives believe that tackling complex problems with lateral thinking is a critical skill for effective leadership in 2025, further highlighting the importance of fostering a culture that encourages innovation and recognition.

In addition to formal recognition programs, organizations should also encourage informal recognition practices. Simple gestures, such as expressing gratitude or acknowledging a job well done, can have a significant impact on employee morale and engagement. By fostering a culture of appreciation, organizations can create a more positive and motivating work environment.

In a competitive talent landscape, organizations that invest in their Total Rewards programs will not only attract top talent but also foster a culture of engagement and loyalty. By embracing innovation, focusing on business fundamentals, exploring new pathways to growth, delivering vital transitions with skills, and unlocking the longevity economy, organizations can create a thriving workplace that empowers employees to succeed.

As we move through 2025, the insights shared during this dinner will undoubtedly guide Total Rewards leaders in shaping strategies that resonate with their workforce and drive organizational success. The conversations held during this event highlighted the importance of adaptability, creativity and a commitment to employee well-being in developing effective Total Rewards strategies. By prioritizing these elements, organizations can position themselves for success in an ever-changing business landscape, ensuring they remain competitive and capable of attracting and retaining the talent necessary for future growth.

Ultimately, the future of Total Rewards lies in understanding and responding to the evolving needs of the workforce. By fostering a culture of continuous improvement and innovation, organizations can create a more engaged, satisfied, and productive workforce, paving the way for long-term success in the years to come.