Global highlights from the 2023 Benefits Trends Survey
Today, organizations face a shortage of key talent in almost all regions of the world. In addition, they also grapple with economic challenges due to persistent downstream effects of the pandemic. However, their focus on offering benefits that meet their employees’ diverse needs has not wavered.
Competing for talent is by far the most persistent business issue for employers (Figure 1), as reported by more than three in four (76%) of employers globally. In addition, employers also face cost pressures, with half of employers globally (51%) citing rising costs as a key influence on benefit strategy. This figure jumps to 62% in North America and 66% in Central and Eastern Europe, Middle East and Africa (CEEMEA).
This puts employers in a difficult position. Spending more on benefits to attract and retain talent would be at odds with the current business environment and focus on cost containment. This is prompting employers to look for alternative solutions, such as enhancing choice and flexibility and improving efficiencies.
Along with this heightened focus on talent and cost, employers also cite other issues influencing their benefit strategy, including the focus on diversity, equity and inclusion (DEI) as well as flexible working and mental health.
When asked to identify the top three most important benefit strategy issues across the five dimensions, more than half of employers globally (55%) and in CEEMEA (54%), Latin America (53%) and Asia Pacific (56%) cited plan costs (Figure 2).
However, in North America, where benefits are a larger component of the employment package and where rising benefit costs have been an issue for some time, this figure rises to 72%, while in Europe, it drops to 48%.
| Global | North America | Europe | CEEMEA | Latin America | Asia Pacific | |
|---|---|---|---|---|---|---|
| Plan cost | 55% | 72% | 48% | 54% | 53% | 56% |
| Meet needs for all employees | 50% | 49% | 57% | 63% | 51% | 42% |
| Wellbeing | 46% | 42% | 43% | 36% | 53% | 48% |
Half of employers globally indicated that meeting the needs of all employees was an important issue. This figure increases to 57% in Europe and decreases to 42% in Asia Pacific. This issue is linked to the importance of DEI in the benefit agenda highlighted earlier.
With an increasingly diverse workforce, employers will likely need to address DEI issues to offer benefits that support wellbeing, promote equitable health outcomes and meet varied needs to attract and retain talent in a competitive market.
The focus on wellbeing continues to stand out. Employers recognize the importance of helping employees improve the different aspects of their wellbeing. Over four in 10 employers across most regions ranked wellbeing a top three benefit strategy issue.
Looking ahead over the next two years, employers are focused on shaping a more competitive benefit portfolio that meets their employees’ diverse needs across a range of areas (Figure 3):
To strengthen their benefit financing in the next two years, roughly three-quarters of employers globally (74%) plan to improve the terms of their vendor contracts (Figure 4). More than half of employers (55%) have already taken steps to reevaluate these contracts.
Across the different regions, a large majority of employers plan to take action in this area, including employers in CEEMEA (65%), Asia Pacific (71%), Europe (74%), Latin America (79%) and North America (80%).
To find out more from the 2023 Benefits Trends Survey, please download the full report using the form on the right. You can also explore our regional findings:
