Businesses are urged to align themselves with Maslow’s hierarchy of needs

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Compensation and benefits have always been key factors in employee satisfaction. However, as workforce needs evolve, these elements will undergo significant changes.

Guided by Maslow’s Hierarchy of Needs, businesses will need to rethink their approach to meeting basic material needs and addressing psychological safety, personal development and recognition, ensuring a more holistic and motivating work environment.

Level 1: physiological needs – competitive salary

“Salary and compensation should directly reflect performance, meaning compensation should reflect results rather than just the number of hours worked.» said Minh Man, a 29-year-old office worker.

Historically, salary and benefits were considered the most deciding factors in choosing a job. However, in the modern workplace, the appeal of compensation extends beyond just the numbers. It now relies on fairness and transparency in performance evaluation. A well-defined performance appraisal system gives employees clear expectations, guiding them on how to obtain bonuses or salary increases, thereby promoting motivation and leading to higher performance.

Nguyen Thi Quynh Phuong, head of human capital solutions at Talentnet, said salary transparency will be a winning factor in every organization’s salary strategy in 2025. Incentive-based rewards, such as KPI bonuses, bonuses Project success and promotion opportunities linked to achievements, are effective ways to motivate employees to reach their full potential and thus help companies retain their best talent.

Level 2: Safety needs – improved mental health

Mental health benefits are becoming a key priority for companies looking to improve employee satisfaction and retention. Modern benefits programs are no longer limited to basic health insurance, but are now customized to meet the diverse needs of employees and their families.

59 percent of employers recognize family benefits as a key factor in attracting and retaining top talent. One example is extending health insurance coverage to employees’ spouses and children, rather than limiting it to just the employee.

By focusing on the well-being of their employees’ families, companies foster a deeper sense of stability and emotional support. This is particularly crucial in an era of increased workplace pressures, where mental health has a direct impact on employee performance and organizational engagement. Companies that prioritize holistic wellness not only improve employee morale, but also build long-term workforce loyalty and productivity.

Level 3: Belonging Needs – SuperCollaboration is Key

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Beyond improving team communication and collaboration, AI plays an important role in improving employee performance. A Harvard study found that employees using AI tools can improve the quality of their work by up to 40% compared to those who don’t. By leveraging AI for routine tasks, employees can focus on higher-impact work, more easily meeting the demands of their role and ensuring their relevance in a changing job market.

At the same time, collaboration between humans and technology, particularly AI, has become a crucial issue that businesses must respond to. Businesses can no longer simply view AI as a tool to help employees; they must embrace the concept of SuperCollaboration (a concept innovated by James Taylor, keynote speaker at The Makeover 2024) – a close partnership between humans and technology. This means that in the future, AI will not only support tasks, but will also participate in decision-making, creativity and process improvement. Businesses need to create environments where humans and AI can thrive together, supporting each other, instead of viewing AI only as a tool.

Level 4: esteem needs – truly valued impact of a company

Today, employees are no longer just looking for a salary; they aspire to contribute to something meaningful. By implementing ESG principles, such as investing in green technologies and developing carbon reduction strategies, companies create sustainable value and enable their employees to take pride in their contributions, knowing that their work results in tangible, positive change. With ESG-related assets expected to reach $53 trillion by 2025, ESG is not only an inevitable trend in global decision-making, but also strengthens alignment between corporate missions and personal aspirations of employees.

To engage employees effectively, organizations must integrate ESG across the entire employee lifecycle – from recruitment and training to career development and recognition. Programs focused on green skills development, internal ESG initiatives and ESG-structured career paths build employee loyalty and inspire greater engagement.

“When employees see their efforts aligned with a more ambitious goal, they develop a stronger sense of self-worth, increased productivity and greater loyalty to long-term sustainability goals. By prioritizing ESG, companies can create a workplace where employees feel valued, inspired and motivated to make a meaningful difference,” said Quynh Phuong.

Level 5: Self-actualization needs – Leadership EQ

One of the most effective ways to foster respect within an organization is through leadership that demonstrates emotional intelligence (EQ). EQ leadership goes beyond recognizing and managing one’s own emotions: it involves understanding and connecting with others on an emotional level. Leaders with high EQ know how to listen, empathize, and build trust within their teams, ensuring that every employee feels respected and valued.

EQ leadership is about listening, empathizing, and building trust so everyone feels valued.

“Leadership is not just about strategy; it’s about connection. At Talentnet, we believe that EQ is the foundation of extraordinary leadership, which is why we offer EQ courses that inspire growth, build confidence and unlock the power of compassionate leadership,” said Phuong.

These five aforementioned HR needs are expected to continue to shape the job market in 2025, leading to significant changes. However, depending on the strategic objectives and priorities of each company, HR departments must adapt their plans accordingly. It may also be beneficial to consult with professional human resources consulting services to ensure that they are not just following trends, but rather aligning strategies with actual business needs.

Elevate your HR strategy with Talentnet. As a strategic HR partner, we offer comprehensive solutions to optimize your workforce, increase productivity and drive growth for your business. Find out how Talentnet can transform your HR function. Visit to learn more.

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