The role of job evaluation: creating pay parity and internal equity
At the heart of any robust total reward strategy lies a reliable job evaluation system. This provides the objective, structured framework that ensures roles are assessed consistently based on their responsibilities, impact and complexity.
Without job evaluation:
- Pay decisions risk becoming arbitrary or manager-dependent.
- New hires may receive salaries above existing employees.
- Disparities in pay across departments, genders or roles easily go unnoticed, leading to mistrust and disengagement.
Job evaluation helps establish pay grades, job families and career pathways that are fair and defensible. This ensures employees at similar levels of responsibility and skill are rewarded equitably, while also recognising the nuances between roles. At a time when preliminary results of our UK Reward Management Survey for Spring 2025 reveal that nearly half of organisations are paying new hires up to 10 per cent more than existing staff, job evaluation becomes critical in addressing growing concerns around internal pay equity.
The rise of personalised benefits and why it matters
The traditional one-size-fits-all approach to benefits no longer cuts it. According to Aon’s 2025 Employee Sentiment Study, 57 per cent of employees would be willing to trade existing benefits for a better, more personalised package. With multiple generations in the workforce and economic pressures mounting, tailoring benefits to meet diverse needs is no longer a luxury: it is a necessity.
For example, Generation X and Baby Boomers tend to place a higher value on retirement savings, while Generation Y prioritises career development and work-life balance, with many also managing side gigs. Meanwhile, employees experiencing wellbeing challenges are more likely to value targeted benefits such as women’s health support, savings plans and mobility perks.
In parallel, private medical insurance is becoming much more desirable, as NHS wait times continue to be under strain. While this does not top the list of Gen Y’s priorities, it remains a powerful lever for older or high-risk employee groups. Certain benefits providers are offering tools that help employers use data to identify needs and target spend more effectively, harnessing the use of data to inform the total reward strategy.
These insights reinforce that a modern total reward strategy must be data-led and employee-centric, offering choice, flexibility and value for money.
Learning and Development: A critical lever for retention
Even in a market where salary increases are limited, career development remains a powerful retention tool. Employers often underestimate how strongly learning and development (L&D) influences an employee’s decision to stay or go. Yet, today’s employees are clear: they expect ongoing opportunities to grow, learn and move forward.
Managers play a pivotal role here. Regular career conversations, skill audits and development planning can uncover hidden ambitions or frustrations. But for these initiatives to succeed, they must be backed by organisational investment and strategy.
Unfortunately, recent policy changes threaten to derail progress in this area. The UK government's decision to scrap Level 7 apprenticeship funding for most employees from 2026 has been met with strong criticism. The NHS, which provides a third of all public sector apprenticeships, has warned this move will significantly impact development pipelines. In a world where seven million fewer jobs are predicted globally due to trade uncertainty, cutting back on high-level training could undermine efforts to future-proof the workforce.
Organisations must find alternative ways to invest in L&D — whether through mentorship, e-learning platforms, career pathways or internally funded training. Linking these opportunities directly to role evaluations and promotion criteria strengthens the perception of fairness and transparency, while encouraging high-potential individuals to remain and grow within the business.
