Benefits Trends Survey 2023
ZURICH, July 5, 2023 – Competition for talent is the number one issue faced by Swiss employers in 2023, as 85 % of companies cite this as a factor influencing their benefits strategy. Yet only two-fifths of organisations (42 %) feel that their current benefits plan is effective or highly effective in attracting and retaining key talent. That’s according to the Swiss results of WTW’s global Benefits Trends Survey 2023.
With the current benefits offering, employers seem to struggle the most with maximising employee engagement and participation with their benefits package throughout the year with only 16 % rating themselves as effective in this area.
While many employers have doubts about their own strategy, they recognize the importance of a benefits offering that is aligned to their workforce needs. In fact, for more than half of the companies (61 %), a key area of focus is to ensure that benefit plans meet the needs of all employees. This under accelerating concerns around rising costs, which are now the third most important issue influencing benefit strategies, despite not even being in the top four issues in 2021.
One third of employers (32 %) are anticipating ongoing persistence of higher inflation, while 37 % expect an impact from the weakening economy and current business environment. Striking a balance between addressing employee needs and budget restrains might prove a challenge.
In a bid to conserve costs, two in five (43 %) look to focus on the plan costs of their benefits with almost half of employers (46 %) have taken action to improve terms from vendor contracts, while 64 % are planning to take action.
For some employers, their only option is to cut down on the number of benefits they offer in response to rising costs. 6 % of employers have opted to reduce the generosity of their benefit programs overall, while 10 % have plans to do so. On the other hand, 42 % of the companies in Switzerland are planning to secure additional funding for benefit programmes.
“Although Swiss companies are less affected by the inflation than other markets, costs are rising and budgets for employers’ remain tight.”
Reto Ebnöther | Head of Health & Benefits, WTW Switzerland
Reto Ebnöther, Head of Health and Benefits at WTW Switzerland says: “Although Swiss companies are less affected by the inflation than other markets, costs are rising and budgets for employers’ remain tight.
Reducing the overall generosity of benefits packages needs to be carefully considered in a challenging labour market that is driven by a competition for talent. Meanwhile, and to handle today’s demanding workforce, employers are persuaded to drive efficiencies and to streamline operations.
“This is especially challenging when employees are urging for more financial protection and support with their benefits throughout the year. Employers need to take action.”
WTW surveyed 85 Swiss organisations across a broad range of industries about their benefit strategies between 1 March 2023 and 14 April 2023 for its 2023 Benefit Trends Survey.
