Rethinking Total Rewards: What "Equity" and "Belonging" Really Mean in 2025

Remember when total rewards meant a paycheck, some healthcare benefits, and maybe a 401(k) match? Those days are long gone. As we navigate 2025's complex workplace landscape, organizations are discovering that yesterday's compensation packages simply don't cut it anymore.

The Great Resignation might be in our rearview mirror, but its lessons remain front and center. Employees aren't just looking for fair pay—they're seeking workplaces where they feel valued, included, and able to bring their whole selves to work. In response, forward-thinking companies are radically reimagining their total rewards strategies with two critical concepts at the center: equity and belonging.

But what do these terms actually mean in practice? Let's move beyond the buzzwords to explore how these principles are reshaping the workplace—and why they matter more than ever in 2025.

The Evolution of Total Rewards: Beyond Compensation

Total rewards have undergone a massive transformation. Once primarily focused on financial compensation and basic benefits, today's total rewards packages encompass:

• Base salary and performance-based compensation

• Health, wellness, and financial benefits

• Professional development opportunities

• Work-life integration supports

• Recognition programs

• Workplace culture and environment

• Career progression pathways

• Community impact initiatives

This evolution reflects a deeper understanding that employees are whole people with complex needs that extend far beyond their paycheck. As organizations compete for talent in a tight market, they're discovering that holistic, human-centered total rewards strategies create significant competitive advantages.

Equity Reimagined: From Equal Treatment to Equal Outcomes

In 2025, equity in total rewards has evolved far beyond equal pay for equal work (though that remains foundational). Today's understanding of equity acknowledges the reality that different employees need different supports to thrive.

What Equity in Total Rewards Looks Like in 2025:

1. Transparent and Accessible Compensation

Transparency isn't just about publishing salary ranges—it's about making compensation decisions understandable and accessible to everyone. Organizations practicing true compensation equity can clearly explain:

• How pay decisions are made

• What factors influence compensation

• What skills and contributions lead to advancement

• How pay equity is monitored and maintained

2. Personalized Benefits That Address Barriers

One-size-fits-all benefits packages are becoming extinct. Forward-thinking organizations now offer customizable benefits that employees can tailor to their unique circumstances:

• Flexible childcare and eldercare supports

• Mental health resources that reflect diverse cultural needs

• Financial wellness programs that meet employees where they are

• Learning opportunities that accommodate different learning styles

3. Equitable Access to Opportunity

Equity means ensuring everyone has a genuine chance to advance, not just equal access to the same resources:

• Intentional mentorship and sponsorship programs

• Skills-based hiring and promotion practices

• Targeted development for underrepresented groups

• Accommodation practices that remove systemic barriers

"Equity isn't about treating everyone the same—it's about providing what each person needs to succeed given their unique circumstances and challenges," says Chrysta Wilson, CEO of Wilson and Associates. "When organizations embrace this understanding, they create workplaces where everyone can thrive."

Belonging: The Missing Piece of the Total Rewards Puzzle

While equity addresses fairness in outcomes, belonging speaks to the emotional and psychological experience of employees. In 2025, belonging has emerged as perhaps the most powerful yet underutilized component of total rewards.

What Belonging in Total Rewards Looks Like in 2025:

1. Cultural Contribution Valued Alongside Performance

Organizations are increasingly recognizing and rewarding employees who strengthen culture and build community:

• Recognition programs that celebrate collaboration and inclusion

• Performance reviews that assess cultural impact

• Rewards for mentorship and knowledge sharing

• Advancement opportunities for those who embody organizational values

2. Voice and Agency in Decision-Making

Belonging happens when employees feel their perspectives matter:

• Participatory budget processes for team resources

• Employee input in benefits design

• Collaborative policy development

• Transparent communication about organizational decisions

3. Community Connection Both Inside and Outside Work

The boundaries between work and life continue to blur, and total rewards are evolving to address this reality:

• Paid time for community volunteering

• Matching donations to causes employees care about

• Team-building activities that create meaningful connections

• Support for employee resource groups and affinity networks

The Business Case: Why Equity and Belonging Drive Results

Some leaders still question whether these "soft" elements of total rewards deliver hard business results. The evidence is increasingly clear: they do.

Organizations with strong equity, belonging, and culture practices are seeing:

• 42% of turnover rates prevented according to Gallup's 2022 State of the Global Workplace report)

• 56% increase in job performance when the team has a strong sense of belonging. 2019 BetterUp study

  
  

  58% higher innovation metrics in departments with diverse representation and inclusive practices (according to McKinsey & Company's 2020 Diversity Wins report)

These aren't just feel-good metrics: they're business imperatives. In a competitive marketplace, organizations that fail to evolve their total rewards strategies around equity and belonging are leaving significant value on the table.

Practical Strategies: Making Equity and Belonging Real

Creating total rewards packages that deliver on equity and belonging requires intentional action. Here are practical approaches that work:

1. Conduct a Total Rewards Audit

Before making changes, understand your current state:

• Map out all components of your total rewards package

• Gather data on who accesses which benefits

• Analyze compensation patterns across demographics

• Survey employees about their experiences and needs

2. Implement Team Agreements Around Recognition

As we've discussed before, team agreements create clarity and accountability. Apply this approach to how recognition and rewards are distributed:

• Collaboratively define what "good work" looks like

• Create transparent criteria for recognition

• Establish regular checkpoints to assess fairness

• Build in accountability measures for managers

3. Add Accountability to Your Total Rewards Approach

Accountability isn't just for conflict resolution or performance: it's essential for effective total rewards:

• Set clear equity goals with measurable outcomes

• Train managers on inclusion-conscious decision making

• Conduct regular equity audits of compensation and promotion decisions

• Create feedback loops that allow employees to safely raise concerns

4. Build a Culture of Gratitude

Recognition is a powerful but often underutilized component of total rewards. Apply our 8 practices to build a culture of gratitude to strengthen belonging:

• Make recognition specific and timely

• Create peer-to-peer recognition opportunities

• Celebrate efforts and growth, not just outcomes

• Connect recognition to organizational values

Moving Forward: Your Total Rewards Evolution

Transforming your organization's approach to total rewards doesn't happen overnight. Like any meaningful cultural change, it requires the Recipe for Transformation™ that combines clear vision, consistent action, and continuous learning.

As you consider how to evolve your total rewards strategy for 2025 and beyond, ask yourself:

1. How well do we understand what our employees actually value? (Not what we think they should value)

2. Where might inequities exist in our current total rewards system?  

3. How are we measuring and strengthening belonging across our organization?  

4. What feedback mechanisms exist for employees to shape our total rewards approach?  

5. How are we adapting our strategy to meet evolving employee needs?

The answers to these questions can guide your next steps toward a total rewards strategy that truly delivers on both equity and belonging.

Your Next Step: From Insight to Action

Ready to transform your organization's approach to total rewards? Start with a comprehensive assessment of your current state.

Wilson and Associates offers customized total rewards audits that examine both the structural components of your compensation and benefits packages and the lived experiences of your employees. Our approach combines data analysis with qualitative insights to identify opportunities for meaningful change.

Contact us to schedule a consultation and take the first step toward a total rewards strategy that delivers real equity and belonging for all your employees.

Remember, in 2025's, organizations that excel at creating workplaces where everyone can thrive don't just attract the best talent, they are able to tap into t heir full potential.

Isn't it time your total rewards strategy did the same?