Virgile Raingeard is the co-founder and CEO of Europe’s leading compensation benchmarking platform Figures, founded in 2020 and based in France.
1. The end to ‘competitive salary’ on job adverts
Pay transparency has been the talk of the town this year following the new EU directive adopted by the Council in April, which will force companies to tell job seekers the expected salary (or salary range) for positions they advertise.
As a result, we’re predicting that 2024 will be the start of the end of ‘competitive salary’ on job postings. Not only is this the right (and soon to be legal) thing to do, but it can also help startups and larger companies attract more talent: one recent survey found that 80% of jobseekers would likely pass on applying for a job without pay information.
Transparency will likely extend to compensation policies and philosophies so candidates and employees can see the thought process that goes into determining salaries so employees know they are being paid fairly and equitably.
2. Focus on internal equity
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Once the EU Pay Transparency directive is in force, all employers with 150+ employees will have to report their gender pay gap and actively address and rectify it. More companies in 2024 are expected to allocate a portion of their compensation review budget to tackling the gender pay gap.
Here’s what that might look like depending on the organisation:
- Conducting pay equity analyses to understand the extent of the problem
- Providing generous parental leave and benefits to help parents and caregivers
- Adopting flexible working arrangements to meet diverse employee needs
- Reviewing and revising your recruitment processes to root out in-built biases
- Implementing measures to promote equal representation in high-level positions
3. Not just about the paycheck
In 2024, we predict that employers will look beyond base salary and put a greater emphasis on total rewards as a full package. Many employers are operating with tighter budgets, which means they may not be able to pay the salaries they’d like to. By reevaluating their benefits package, employers can craft solutions that provide value to employees while remaining budget-friendly.
Given the current economic climate, which is expected to extend in 2024, we think we’ll see companies offering benefits that specifically aim to help those employees with the rising cost of living — like employee discount programmes or membership schemes.
We’ll also likely see companies increasing their focus on financial support for employees, through things like awareness sessions on budgeting, managing debt or the importance of paying into a pension.
It’s not just about the paycheck any more — it’s about creating a comprehensive package that addresses the evolving needs of employees.
4. Personalised, customisable benefits programmes
Over the past few years, the way we work has changed a lot. And one big lesson we’ve learned is that different employees have different needs and priorities. Different employees want different things, and employers that give them this choice will have a definite competitive advantage in 2024.
Here’s an example: BNP Paribas Leasing Solutions has really nailed customisable benefits for its employees in the UK. In addition to a competitive salary, bonus and pension scheme, all permanent employees have access to a package of flexible benefits including everything from dental insurance to vehicle breakdown cover to season ticket loans.
5. Technology and automation coupled with human insights
As compensation and benefits systems get more complex, companies need to rely more and more on technology. In particular, 2024 will be the year of the increasing use of AI in compensation systems (and everywhere else). It’s too soon to say exactly what impact AI will have on the compensation landscape over the next twelve months.
But we are confident about one thing: AI tools won’t be capable of capturing the subtle nuances that go into the compensation process. While they might make life easier for HR and compensation leaders, they’ll continue to be used alongside those leaders’ own intuition and expertise.