What new trends might we see in the world of equity compensation, rewards and benefits in 2025? That was the focus on the most recent episode of the J.P Morgan Workplace Solutions Prosperity at Work podcast, as hosts Chris Dohrmann, Executive Director, Strategic Partnerships, and Lauren Jenkins, Head of Executive Participant Servicing, sat down and offered up their predictions for what the year ahead may hold in store.
Artificial intelligence
Expect to see the march of AI continue, with the rapidly advancing technology set to transform compensation and benefits roles in 2025. Lauren thinks AI will become an important tool for those working in this area to better leverage data, with the idea being that compensation specialists will soon be able to utilize AI to better tailor competitive equity offers to meet the needs of those they’re looking to recruit.
Pay transparency
Chris believes pay transparency will continue to make its way into the mainstream and that it will do so through being linked to job architecture. He noted that the main reservation most corporations have around pay transparency relates to what might happen when people realize they were hired at different salaries. With this in mind, Chris foresees the most likely way forward will involve companies adopting an approach whereby it is made clear to people before they are hired what their salary is going to be, what their range is and where the progression path is to a new position and a new pay range. He thinks embracing this level of openness will prove to be beneficial for employer and employee alike.
Cybersecurity
Both Lauren and Chris are of the view that cybersecurity is going to prove to be more important than ever across all sectors in 2025. Whereas IT and finance departments have long since been focused on cyber-based threats, the prediction here is that personnel in other areas of companies are going to start paying attention like never before. Partly arising from AI, some sectors are going to have more and more data and that will bring with it greater risk of penetration, hence it makes sense that there will be more emphasis placed on cybersecurity across the board.
Data privacy
Lauren expects a greater emphasis on data privacy in the United States, as companies respond to a desire among consumers for their concerns to be acted upon. People are becoming increasingly conscious of issues like identity theft and what happens to their data when they leave an app, move bank, change lawyer or change employer etc. More and more individuals are realizing that leaving data behind is tantamount to leaving it exposed and she expects they will want companies to offer reassurance in the form of action.
SEC oversight
Arising from some of the points made above, Chris and Lauren both also expect to see increased oversight from the U.S. Securities and Exchange Commission (SEC) in 2025. Emerging AI technologies and evolving cybersecurity threats will demand an official response and regulations will need to be updated if they are to keep up with the changing situation on the ground.
To listen to the full episode, click here.
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This publication contains general information only and J.P. Morgan Workplace Solutions is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. J.P. Morgan Workplace Solutions’ Insights is not a substitute for professional advice and should not be used as such. J.P. Morgan Workplace Solutions does not assume any liability for reliance on the information provided herein.
