5 global benefits trends that are shaping strategy

As their roles and responsibilities continue to expand, reward leaders are looking for smarter and more sustainable ways to deliver value for money.

Today’s reward professionals are expected to do it all: ensure compliance across borders, evolve benefits to reflect ESG and DEI goals, support wellbeing, elevate employee experience, and demonstrate ROI on every investment.

Many are now also responsible for implementing and managing the technologies that promise to make these goals achievable.

In Benifex’s 2025 research report, 72% of reward leaders said they’re responsible for benefits across more than one country. Their remit keeps expanding – often faster than the support or infrastructure around them.

As a result, they’re looking for smarter, more sustainable ways to deliver value. Technology is playing a key role – helping teams tailor benefits, track performance, and optimize spend at scale.

Here are five global benefits trends that are shaping strategy this year.

1. The rise of voluntary benefits

In response to diverse employee needs – and increasing cost scrutiny – many employers are expanding voluntary benefits. These are benefits employees can choose to pay for themselves, often at discounted or tax-efficient rates, such as dental cover, gym memberships, or travel insurance.

Voluntary benefits give employees more control over their total reward while helping organisations scale choice without scaling cost. Through technology, global employers can surface locally relevant options, manage enrolment centrally, and track uptake to understand what employees value most.

Takeaway: Voluntary benefits are becoming a practical route to deliver the choice and flexibility employees are looking for – without blowing the budget.

2. Wellbeing allowances are evolving

Wellbeing remains a strategic priority, but the way it’s being delivered is shifting. With cost controls tightening, some organisations are reassessing the structure and scope of their wellbeing budgets.

Many are moving toward targeted allowances – often delivered via benefits platforms that track spend and usage. This approach allows employees to choose the wellbeing support that matters most to them – whether that’s mental health, fitness, or financial wellbeing – driving greater relevance and personal impact.

Technology also helps teams evaluate ROI more clearly, identifying which wellbeing initiatives deliver the most impact in each region. The result is not necessarily less investment – but smarter, more sustainable investment.

Takeaway: Employers are still backing wellbeing – but with clearer controls and smarter tracking.

3. Strategic cost optimisation

In benefits rich regions where employers often offer a broad range of choice, many are focusing on consolidating and optimising their benefits strategy. Rather than introducing more and more new benefits, the priority is making better use of what’s already in place.

Clear, consistent communications play a key role here – helping HR teams raise awareness of underused or underappreciated benefits. Targeted messaging shows people the value of what’s already on offer, while AI-driven search ensures employees get instant answers – creating a frictionless experience.

Employers are also exploring whether existing benefits can be flexed. In some cases, this means negotiating with providers to give employees the option to enhance coverage – such as medical or life insurance – at their own expense.

Often, there are valuable features already embedded within a benefit that employees may not be aware of. For example, a medical plan might include a virtual GP service or an annual health check, while a pension provider might offer free investment tools or discounted financial advice.

Targeted communication is essential here too, ensuring employees unlock more value from benefits without additional cost to the organisation.

Takeaway: Strategic cost reduction is the new focus, with smart communication and targeted provider partnerships helping employers deliver more value from the benefits they already offer.

4. Smarter use of flex funds

Organizations are increasingly looking for ways to offer more choice without stretching their budgets – and flex funds have emerged as a popular solution. Rather than automatically enrolling employees into set benefits, organisations are redirecting part of that spend into personal funds.

Employees can then decide how to use it – whether that’s adding dependents to their medical plan, purchasing extra leave, or selecting from a range of voluntary benefits.

Most companies still provide a baseline of core cover, such as life insurance or pension contributions, to ensure essential protection remains in place. But beyond that, this flexible approach empowers employees to spend on the benefits that matter most to them, boosting both perceived value and personal relevance.

Takeaway: Flex funds give employees more choice without driving up costs – giving employees a more personalised experience, while maintaining essential cover.

5. Renewed focus on financial wellbeing

With cost-of-living pressures persisting, many employers are finding practical ways to support employees’ financial resilience.

Meal vouchers – often extendable for use in supermarkets – are helping to offset everyday food costs, while discounts apps with savings on everything from tech to travel have become a simple way to make employees’ money go further.

We’re also seeing more organisations integrate financial wellbeing tools, such as Dashly, Money Guided, Octopus Money and Quilter, into their benefits platforms, or partner with local financial advisors to provide tailored guidance.

By combining immediate cost-saving measures with longer-term financial planning support, employers can offer a more holistic approach to employee financial wellbeing. This trend has grown rapidly in recent years, and all signs point to its continued momentum.

Takeaway: Financial wellbeing support is expanding beyond pay – with many organiszations bringing together everyday savings with tools and advice to help employees build long-term financial resilience.

Putting insight into action

Each of these trends reflects a shift towards more intentional, data-led benefits strategies. Whether it’s flexing existing packages, surfacing more relevant choices, or supporting wellbeing in more personalised ways, global organisations are getting more strategic about how they deliver value.

Download Benifex’s latest global benefits report for your guide to what’s happening in global benefits – and how to respond.