Employee Benefits
Why employers are making benefits their top priority
15-08-2024
Every year, Benefex surveys more than 2,000 employers and employees across four continents to bring you the latest trends in the employee benefits landscape. This year, our report, The Expectation Exponential, revealed that employee expectations are rising faster than ever before. 64% of employers rate their employee experience as excellent, but only 20% of employees agree. So, how can organisations get ahead of — or even keep up with — this exponential increase?
Our research shows that benefits remain a critical strategic focus for employers striving to meet these growing expectations. With 91% of employers saying that benefits help align employee values with organisational purpose, benefits are increasingly seen as the primary platform for employers to hit their key workforce objectives. These include building a strong, inclusive culture, protecting and promoting employee wellbeing, engagement and productivity, and attracting and retaining high quality talent.
In line with this, benefits have become the top priority for workforce-related investment in the coming year, with 71% of HR and Reward professionals expecting to increase spending on benefits.
Benefits are the key to a better employee experience
Our research highlights the extent to which employee expectations for benefits provision have evolved and increased over the past year. HR and Reward professionals report that 45% of employees are demanding more flexible and personalised benefits, 42% are looking for greater choice, and 39% are increasingly wanting benefits aligned with their own personal values.
Moreover, 34% of HR and Reward professionals have noticed increased employee engagement with benefits over the past 12 months – a similar figure to last year (35%) – a sign that employers’ efforts to drive greater engagement with benefits are finally paying dividends.
Expectations around benefits are rising at a rapid rate, with over 90% of employees stating the importance of benefits that protect them during sickness, help achieve work-life balance, and support their financial, physical, and emotional wellbeing.
Global analysis: How employee expectations vary by region
Employees in India generally have the highest expectations in terms of the impact that benefits should bring to their lives, particularly for benefits that support their financial wellbeing and mental health. European employees, on the other hand, prioritise achieving a good work-life balance, with 72% considering this very important. On the other hand, U.S. employees attach greater importance to benefits that provide sickness protection and support their financial wellbeing.
When it comes to employers, there are some variances in investment intentions between organisations with global workforces and those operating only in Europe, with the former more likely to be directing additional budget to areas such as wellbeing support, recognition, sustainability, reward insights and reward technology. Interestingly though, organisations with workforces only in Europe are more likely to be increasing their investment in benefits provision.
Flexibility and wellbeing – the future focus for benefits
HR and Reward professionals are clear about the steps needed to improve benefits provision in the short term. Over the next two years, 45% of employers will focus on more closely aligning benefits with company values and purpose, while 40% will focus on providing benefits aimed at protecting and promoting employee wellbeing, and 36% plan to offer greater flexibility in benefits selection through benefits allowances. Other priorities throughout 2024 and 2025 will be achieving better insight and analytics into benefits uptake, engagement and outcomes (36%), and the implementation or upgrading of benefits platforms (35%).
Employees are seeking greater flexibility in their benefits choices, as well as opportunities to make these choices year-round. They also want benefits that are relevant to and personalised to their life situations, and that support all aspects of their wellbeing.
Global insights on benefits preferences
Employees in S.E. Asia lead the way when it comes to wanting more flexibility in benefits (54%) and the ability to choose them year-round (50%). Once again, employees in India place a greater emphasis on employee wellbeing support (56%), and they also want more intuitive, accessible technology for the benefits selection process. Employees in Europe and the U.S. want benefits that are more relevant and personalised to their needs.
On the employer side, HR and Reward professionals in Europe are more likely to increase their focus on employee wellbeing in their efforts to evolve employee benefits over the next two years. Meanwhile, their counterparts in global organisations will prioritise the alignment of benefits with company values and purpose. They’re also more likely to look at rolling out a global benefits platform or to upgrade an existing platform.
Building a future-ready benefits strategy
Employee expectations around benefits continue to evolve, reinforcing the need for organisations to prioritise flexibility and personalisation when reviewing and adapting their benefits strategies over the next two years. To see how employers are looking to address the employee experience perception gap and give employees more of what they want when it comes to benefits, download our latest research report, The Expectation Exponential.
15-08-2024
