This article draws on themes discussed at the 2024 WorldatWork conference, where the author participated as a speaker.

In today’s complex business environment, organizations are expected to monitor more than just profit and loss or return on investment. A critical component now is the ability to assess impact, requiring leaders to consider numerous factors that were previously off the radar. This shift in focus calls for both sophisticated modeling and the implementation of straightforward, effective interventions—strategies that may already be within easy reach yet often overlooked.

During the recent WorldatWork conference, where I was joined by Jocelyn Wright-McLemore from Zapier, we explored effective strategies for piloting impact within organizations. Our session, along with other insightful discussions at the conference, revealed several critical themes that strategists, researchers, and investors must consider as we approach 2025. These insights are invaluable for anyone looking to navigate the evolving landscape of organizational success.

Theme #1: The Ongoing Neglect of Employee Feedback

Despite widespread discussion about the importance of cultivating trust and inclusion within the workplace, a surprising majority of organizations still fail to incorporate employee feedback meaningfully. Insights from a global survey conducted by Korn Ferry, which included nearly 4,000 organizations, indicate that 81% of these groups (spanning nonprofits to public benefit corporations) do not engage their employees in decision-making processes effectively.

This disconnect raises significant concerns about the implementation of inclusive policies versus their actual practice. Organizations profess a commitment to inclusion as a core value or a key component of their talent strategy. Yet, the stark contrast between these stated intentions and actionable outcomes points to a broader issue within corporate governance. Leaders, investors, and executives cannot afford to overlook the gap between rhetoric and reality, as their performance indicators are increasingly tied to tangible results rather than mere declarations of intent.

For organizations intent on genuine inclusivity, beginning with well-intentioned strategies is merely the first step. The real challenge lies in effectively implementing these strategies to harness the benefits of inclusion, such as reduced turnover and enhanced innovation. As we plan for 2025, it becomes imperative to develop robust systems for gathering and acting on employee feedback, which can later be adapted to other stakeholder groups, transforming these efforts from cost centers into strategic investments.

Theme #2: Closing the $12 Trillion Gender Pay Gap

Gender pay equity is more than a social issue — it is increasingly recognized as a civil right in various regions around the globe. While often framed politically, the economic implications are substantial, with poor compensation practices costing economies around $12 trillion annually. This stark figure underscores the urgent need for systemic change within organizational compensation strategies.

The responsibility to address these disparities often falls unfairly on workers, who are encouraged to negotiate for better wages. However, this approach overlooks the root causes: inadequate data utilization, a lack of proper job performance assessments, undervaluation of crucial skills, and subpar people management practices. It is essential for organizations to undertake regular compensation audits and implement necessary corrections, which may include back pay, promotions, bonuses, equity adjustments, and the creation of new roles to align with actual responsibilities.

A common concern among organizations is the financial feasibility of increasing pay. A practical yet underutilized solution is to enhance non-monetary compensation, such as offering more paid time off, effectively increasing the overall wage-per-hour for employees without escalating payroll costs.

Confusion about the fundamental concepts of gender pay equity persists, as evidenced by discussions at the recent conference. Many attendees admitted to a lack of experience in conducting audits and establishing transparency in compensation data, revealing a significant communication gap between finance and human resources departments.

As we plan for 2025, it becomes imperative to develop robust systems for gathering and acting on employee feedback.

Addressing gender pay equity requires more than just training; it demands an integration of these principles into the broader organizational strategy. Rather than viewing compliance with gender pay equity laws as a potential source of litigation, organizations should see it as an opportunity to enhance their overall business strategies. Questions such as transitioning performance feedback from subjective opinions to skill-based assessments and embedding effective leadership succession plans are vital for long-term strategic planning.

The discussion on gender pay equity at the conference highlighted that even the most socially conscious organizations could inadvertently contribute to ongoing disparities. As we look toward 2025, it is crucial for organizations to proactively plan to address these issues, potentially reducing legal risks and positioning themselves to attract top talent and develop robust strategic plans.

Theme #3: The Urgency of Transparency in Organizational Practices

One of the most startling revelations from the recent conference was the general lack of awareness among executives about the increasing regulatory focus on transparency, especially concerning compensation practices. Discussions across various sessions highlighted a concerning trend: about 30% of organizations are adopting a “wait and see” approach to disclosing pay structures.

The call for greater transparency isn’t just about adhering to new regulations; it’s about fostering trust and credibility with all stakeholder groups. Drawing parallels with the earlier discussions on gender pay equity, the principles of transparency can and should leverage the same data to ensure clarity and honesty in disclosures. This approach not only builds trust but also aligns with ethical business practices, enhancing the organization’s reputation and stakeholder relations.

During the conference, it became apparent that many organizations are hesitant to disclose more data, with the most common reason being a lack of knowledge on how to begin. However, embracing transparency doesn’t need to be daunting. Organizations can start by simply acknowledging areas of underperformance and detailing plans for improvement. This honest approach can transform transparency efforts from a potential liability into a strategic advantage.

Confusion about the fundamental concepts of gender pay equity persists.

The imperative for transparency extends beyond just compliance. It represents an opportunity to benchmark performance and implement necessary improvements proactively. Organizations that shy away from these practices risk not only potential fines for non-compliance but also significant erosion of trust among employees, customers, and investors.

Looking forward to 2025, embracing transparency will be crucial for any organization aiming to remain competitive and ethical. Starting with straightforward, genuine discussions about current challenges and plans for improvement will set the foundation for enduring trust and strategic success.