While many organisations recognise that change is needed, the reality is that most are still operating within traditional frameworks. Vickie Graham, Managing Director at Reward Strategy, sat down with Dan Bailey, Head of Reward and Pensions at AXA UK, to explore how we can evolve our reward models to better relect a modern workforce.

The current models were built for a different era, one defined by stable careers, predictable needs, and long-term tenure. Today’s workforce looks very different, and expectations have shifted accordingly.

The reality: traditional reward still dominates

Participants were asked to describe their current reward approach. Most reported a one-size-fits-all model, with some flexibility emerging, but no fully personalised strategies, highlighting how early the shift still is.

The results confirm what many reward leaders already suspect: personalisation is still more ambition than reality. Despite years of discussion around flexibility, most organisations remain anchored in traditional models that were designed for a more uniform workforce.

What’s striking is not just the dominance of one-size-fits-all, but the complete absence of fully personalised approaches. It suggests that while the direction of travel is clear, execution remains a significant challenge whether due to cost, complexity, or uncertainty around where to start.

From generations to life stages

A key theme throughout the discussion was the shift away from generational thinking towards a more practical and actionable concept: life stages.

Rather than grouping employees by age or generation, organisations are beginning to consider what individuals actually need at different points in their lives. Someone at the start of their career is likely to prioritise financial flexibility, support with savings, and immediate value. In contrast, someone later in their career may place greater importance on pension contributions, healthcare, and long-term security.

This shift matters because it reflects how people experience work today. Careers are no longer linear, and employees are less likely to stay with a single employer over the long term. As a result, reward needs to deliver value in the present, not just in the future.

Why personas change the conversation

The use of workforce personas emerged as a particularly effective way to rethink reward design. By building detailed, forward-looking profiles of different employee types, organisations can better understand what people need, both now and in the coming years.

This approach revealed that many benefit packages are unintentionally designed around the dominant demographic within an organisation, often mid-career professionals. While this may make sense from a historical perspective, it leaves other groups underserved and reduces the overall impact of reward investment.

Personas also help organisations challenge assumptions. For example, they can highlight gaps in areas such as early-career financial support or demonstrate that certain benefits are less relevant than previously believed.

Data is already there but rarely connected

Another key takeaway was that most organisations already have access to valuable data, but few are using it effectively.

Absence data can reveal trends such as rising mental health challenges, while turnover data can highlight critical points where employees are most likely to leave, such as after their first year. Benefit utilisation data can indicate which offerings are valued, and engagement or recognition data can provide insight into what drives retention.

The real value comes from connecting these data points. When organisations start to link absence trends with benefit usage or turnover with employee feedback, they can build a much stronger, evidence-based case for change.

The communication gap

Even when organisations offer strong benefits, their impact is often limited by how they are communicated.

A recurring issue is that many employees, particularly those in frontline or non-desk role, do not engage with traditional communication channels such as email. In some cases, employees are unaware of even basic elements of their reward package.

The most effective approaches tend to be more direct and human. Face-to-face engagement, on-site sessions, and manager-led conversations all play a critical role in helping employees understand and value what is available to them. Reward, in this sense, needs to be actively promoted and explained, rather than simply provided.

Where investment really matters

The discussion also highlighted a common imbalance in how benefits are distributed. In many organisations, benefits become more generous at higher levels of seniority. However, this is not always where they have the greatest impact.

Employees in frontline or lower-paid roles are more likely to experience higher turnover, greater financial pressure, and increased absence. Improving reward in these areas can therefore have a disproportionate impact on organisational outcomes, including retention, engagement, and even customer experience.

What’s shaping reward strategy today

In another participant poll we asked what is shaping participant’s reward strategy. Engagement and retention led by a clear margin, with no votes for data or technology, pointing to a continued focus on outcomes over underlying drivers.

The dominance of engagement and retention as the primary driver shows that reward is still being positioned as a solution to immediate business pressures. Organisations are rightly focused on keeping people, but this can lead to short-term fixes rather than longer-term strategic redesign.

What stands out more is what’s missing. With no respondents selecting data or technology as key drivers, it suggests that while these capabilities exist, they are not yet shaping decision-making in a meaningful way. The risk is that organisations continue to respond to symptoms without fully addressing the underlying structural and workforce shifts driving them.

Looking ahead: what needs attention

In our final poll, participants were asked where reward will need the most focus. Flexible benefits and financial wellbeing came out on top, signalling where future pressure and investment are likely to sit.

The joint focus on flexibility and financial wellbeing reflects the reality of today’s workforce. Employees increasingly expect choice, but they also need practical support as financial pressures continue to shape day-to-day decision-making.

What’s particularly interesting is the relatively lower prioritisation of mental health. Rather than diminishing in importance, this may signal that organisations are starting to view it as part of a broader wellbeing ecosystem; one that is closely linked to financial stress, job security, and overall employee experience.

Where to start

For organisations looking to evolve their reward strategy, the first step is to listen more effectively. Understanding what employees actually value is essential, and this requires going beyond assumptions and gathering meaningful insight.

At the same time, organisations should begin to make better use of the data they already hold. By connecting different data sources and identifying patterns, it becomes possible to build a clearer picture of what is working and where change is needed.

Finally, there needs to be a shift towards flexibility. Rather than simply adding more benefits, organisations should focus on creating a reward framework that can adapt to different needs and evolve over time.

Final thoughts

Reward is no longer just about what is offered. It is about relevance, understanding, and impact.

As the workforce continues to change, organisations that succeed will be those that move away from static, one-size-fits-all models and towards more dynamic, insight-led approaches. In this environment, standing still is not a neutral choice, it is a risk.

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