5 benefits tech trends to improve the employee experience
In the UK, the employee benefits landscape is rapidly transforming, driven by innovations such as artificial intelligence (AI), application programming interface (APIs) and personalized benefits experiences.
As technology continues to evolve, so do employee expectations and the ways employers can meet them.
Here are five key trends shaping the future of employee benefits, which have the potential to improve the employee experience.
1. AI-powered personalisation
Across all industries, companies are turning to AI to provide a more personalised and relevant benefits experience.
AI offers immense potential to reshape HR practices, and 76% of HR leaders see adopting AI as necessary to stay competitive in the coming years.
AI guides administrators on when to communicate with employees and through which channels, ensuring timely, relevant messaging.
By leveraging AI, organisations can tailor benefit recommendations based on individual employee preferences and behaviours, helping employees feel acknowledged and supported.
AI not only personalises benefits but also enhances productivity.
For example, AI tools can potentially increase productivity by up to 30%, transforming workflows and enabling a more efficient and engaging approach to work.
And AI chatbots have the power to provide instant, 24/7 support: handling routine inquiries efficiently and allowing HR teams to focus on more strategic tasks.
2. Benefits marketplaces
Employers are increasingly adopting benefits marketplaces to offer employees a broader selection of benefits and more control over their choices.
This trend reflects the growing demand for flexibility, with marketplaces allowing employees to create personalized benefits packages that fit their lifestyles.
However, 46% of employees don't understand the full value of their compensation packages, underscoring the need for user-friendly marketplace platforms that communicate benefits effectively.
Modern benefits marketplaces can integrate various benefits suppliers, giving organisations a competitive edge: enabling them to offer diverse options without the complexities of managing multiple suppliers independently.
Like AI, marketplaces can reinforce a sense of personalization, allowing employees to choose the benefits that meet their unique needs.
3. API integrations
The amount of digital tools companies use has increased to 93% from 57% during the past three years — indicating the importance of having access to APIs that can connect multiple applications through a single system.
The modern benefits ecosystem requires seamless data flow and real-time updates.
APIs are essential in this: they enable real-time data exchanges between systems, drive efficiency, and enhance the employee experience.
For organisations looking to simplify their processes for employees, API integrations reduce manual data entry, automate data synchronization, and support custom HR solutions that increase productivity and accuracy.
4. Gen Z's expectations
As a generation raised in the digital age, Gen Z is entering the workforce with new and unique expectations that must be met to keep them engaged.
Benify's survey of 8,000 employees, including 917 Gen Z respondents, uncovered key preferences such as flexibility and digital-first solutions.
Perhaps the most revealing finding was that Gen Z's engagement is trending downward, with only 62% reporting high engagement, which is especially low when compared to older generations.
This suggests that employers must capitalize on Gen Z’s close relationship with technology to offer benefits that meet their preferences.
For instance, many Gen Z workers expect benefits that allow them to customise their work schedules and access digital tools that enable hybrid work options.
To address these needs, employers can leverage data-driven benefits platforms that provide real-time insights into what Gen Z wants, facilitating a more engaged and productive workforce.
5. The power of data
As benefits technology becomes more advanced, companies increasingly rely on data to make informed decisions.
However, Benify recently discovered that 30% of companies don't feel like their benefits platform offers enough data analytics capabilities.
This highlights the importance of using a benefits platform that collects and manages data, so that companies can continuously refine their offerings and stay ahead of shifting employee expectations.
By collecting insights on how employees interact with benefits, HR teams can eliminate guesswork and make fact-based strategic decisions that align with employee preferences.
Incorporating data-driven decision-making into HR strategies allows organisations to align benefits with the real needs of their employees, which can improve workplace happiness, productivity, and engagement.
What's next?
Embracing these trends and investing in the right technology will improve employee engagement and position your organisation for sustainable success in an increasingly digital world.
Employee expectations are always changing, but employers can create a more engaging and satisfying employee experience by prioritizing engagement and staying aware of developments in the benefits market.
In partnership with Benify
Benify offers the market's leading global benefits and total reward platform.
