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#BizTrends2025: Future of remuneration - culture, AI, and management shifts
3 Feb 2025
In part 1 of this article, we predicted the salary trends that are shaping the remuneration revolution. While salary trends highlight one side of the remuneration revolution, the broader cultural, technological, and managerial shifts underpinning this evolution are equally transformative.
Dr Chris Blair, CEO at 21st Century
From the rise of AI to the increasing importance of employee-centric cultures, these changes demand a rethink of traditional HR and remuneration strategies. These are our further predictions for the future of the remuneration revolution.
1. AI goes exponential
Artificial intelligence is revolutionising every facet of the workplace, including remuneration. Modern employees expect employers to leverage AI tools to streamline tasks, eliminate inefficiencies, and foster smarter decision-making. HR departments will need to harness AI to build fairer, more efficient compensation structures that reward innovation and strategic use of technology.
2. Cost-cutting to growth mindset
Organisations are shifting from cost-saving strategies to growth-oriented approaches prioritising upskilling, reskilling, and leadership development. Younger employees demand investments in their career growth, making learning stipends and development bonuses essential for forward-thinking remuneration policies.
3. End of entitlement
Generations Y and Z reject entitlement and legacy-based rewards, demanding fair, meritocratic systems instead. Promotions, raises, and perks are increasingly tied to measurable performance, replacing tenure-based incentives. Such meritocracy not only boosts engagement but also builds trust in organisations.
4. Heightened focus on change management
Agility and adaptability are paramount as organisations face constant change. Younger workers thrive in dynamic environments and expect leaders to support their transitions effectively. Change management is no longer a "nice-to-have" but a core competency for modern HR teams, ensuring smoother transformations and more resilient teams.
5. Thinking like a CEO
The new generation desires autonomy and decision-making power, prompting organisations to decentralise authority and embrace entrepreneurial mindsets. Providing employees with ownership opportunities, such as profit-sharing or collaborative goal-setting, empowers them to contribute meaningfully while driving organisational agility.
6. Death of traditional work structures
The Great Resignation and the rise of remote work have dismantled traditional office-based pay systems. Employees now expect equitable compensation regardless of location, emphasising productivity and output over hours spent at a desk. Adapting pay policies for remote and hybrid roles is essential to stay competitive.
7. Fight for equality
A fierce focus on pay equality is reshaping workplaces, as employees demand transparency and fairness in remuneration. Regular pay audits, clear communication, and inclusive policies are no longer optional but essential for organisations seeking to foster loyalty and trust among their teams.
8. Workplace time as a resource
The most valuable commodity in the modern workforce isn’t money—it’s time. Younger generations insist on outcome-based performance evaluations, emphasising efficiency and impact rather than long hours. Time-conscious policies such as flexible hours and generous leave are becoming key differentiators in attracting talent.
As management, culture, and technology reshape the future of remuneration, organisations must embrace these shifts to remain relevant. By fostering agility, leveraging AI, and prioritising employee empowerment, companies can create a forward-thinking culture that aligns with the values of the modern workforce.
This article is based on research conducted by Dr Bussin, Chair of 21st Century, one of the largest remuneration consultancies in Africa.
About Chris Blair
Chris Blair, Chief Executive Officer of 21st Century Pay Solutions Group (Pty) Ltd, has consulted to over 500 organisations - both in Southern Africa and internationally. Chris holds a BSC Chem. Eng. and MBA in Leadership & Sustainability and is registered as a Chartered Human Resource (CHR) Practitioner with the South African Board for Personnel Practice (SABPP). He is also accredited as a Master Reward Specialist through the South African Reward Association (SARA).