5 local and global employee benefits trends you need to know
Each year, Benefex releases The Big Benefits Report. The report is informed by 2,000+ interviews with global employers and employees across four continents.
Here are five trends we explore:
1. The reasons employers invest in benefits are evolving
Benefits remain the primary way for employes to hit their key workforce objectives – however, the extent of benefits investment and the reasons HR and reward leaders are investing in benefits is evolving.
Our 2024 research reveals a sustained move away from cost-based approaches and towards value-based benefits strategies.
Objectives have shifted from tactical to strategic as the conversation around benefits has become increasingly about value and impact (rather than compliance).
Employers want to track and optimise the impact that benefits are delivering to employees in their everyday lives.
Compared to last year, employers are prioritising investment in benefits over other areas of the employee experience.
Interestingly, the top reason employers offer benefits is to retain existing employees and build loyalty; in 2023, the top goal for benefits was to enhance employee wellbeing, which has now fallen to third place.
2. Organisations are putting benefits at the heart of the employee experience
Beyond salary, the number one area where employee expectations have risen is workplace benefits – followed by recognition and wellbeing.
Nearly six in ten (59%) of global employees say benefits and perks are very important when evaluating a new employer.
Employees are also increasingly looking to organisations to support them in areas of their lives that would have been unthinkable just five years ago.
In response, employers are looking to benefits to deliver on and amplify essential components of the employee experience – from wellbeing support to DE&I, sustainability and beyond.
A whopping 91% of HR and reward professionals say that benefits can help align employee values with organisational purpose.
3. Employers are adopting new strategies to meet demand for greater benefits flexibility
The research shows that people want more flexible and personalised benefits, greater choice, and benefits that are more aligned with their own personal values.
To meet demands for flexibility, HR and reward leaders are looking to offer even greater choice within their benefits provision.
Where budget allows, organisations are extending core benefits to a wider range of employees – and where it doesn't, they are providing a wider range of salary sacrifice benefits on an anytime basis.
In the UK in particular, there’s a surge in employers offering voluntary health benefits.
Many employers are now looking to benefits allowances to offer the ultimate benefits flexibility.
For employers, they provide ease and simplicity, enabling them to offer benefits in areas which currently sit outside of their provision, and to establish a more consistent approach to benefits across their international workforce.
For employees, allowances deliver complete choice and relevance; everything is a benefit. As a result, 73% of organisations are looking to introduce benefits allowances in the next 12 months.
4. HR and reward leaders are making progress with data
Employers are becoming more sophisticated in their use of benefits data and analytics.
Last year, just 24% of organisations said they use data and analytics to prove impact and ROI from benefits investment; this year, this figure has increased to 38%.
Encouragingly, 97% of employers are now using data and analytics in some way to inform and optimise their benefits provision.
However, HR and reward leaders are increasingly looking to benchmark their offerings across each of the markets they are operating in – to understand how the benefits they offer stack up against the competition, and better engage and attract top talent.
5. Companies are embracing the opportunity to do more with tech
While employers are making progress when it comes to the use of data and analytics within benefits provision, progress with implementing benefits technology has been slower.
Only 8% of organisations have a single global platform in place, while 6% have multiple platforms across different regions.
Remarkably, the research shows that as many as 85% of organisations with global populations don’t have any kind of benefits platform in place.
However, benefits tech adoption is set to grow significantly with more than three quarters (78%) now considering implementing a platform.
Organisations therefore recognise that how benefits are delivered to employees matters.
If employees feel the technology they use to access benefits is sub-standard, they’re far less likely to use it.
To better engage their people and deliver more personalised experiences, organisations that do have tech in place are using it to deliver targeted and engaging communications.
And by bringing together benefits, reward, recognition and wellbeing support in one place (on the benefits platform), companies are making it easier for employees to get the support they need, when they need it - as well as reaping the rewards in engagement.
Get The Big Benefits Report
To uncover even more trends and see how some of the best companies in the world are evolving their strategies, you can get your copy of The Big Benefits Report here.
And join a Benefex webinar on 24th September with Benefexers Michael Tigwell, chief operating officer, and Stephen Hackett, head of corporate benefits, to hear our perspectives and insights on the research findings.
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