As employers plan for a post-pandemic future, they have high aspirations when it comes to their benefit strategy. Close to three-quarters of employers globally (72%) plan to differentiate their benefit offerings from those of other organizations and to personalize the experience to address the specific needs of employees over the next two years. This represents a significant shift, as only 23% have such a strategy in place today.
The pandemic’s toll on employee health and wellbeing — in particular, employee burnout, stress and mental health issues — is prompting employers to reshape their benefit strategy. External factors are also influencing benefit strategy globally. Top among these are a growing focus on diversity, equity and inclusion (DEI); tight labor markets; and increased remote working.
Addressing many of these factors will require employers to improve employees’ experience with benefits, i.e., how employees engage with their benefits as well as understand and use the full range of programs. This helps explain why 75% of employers indicate that the employee experience is a key priority over the next two years.
Close to two-thirds of employers (65%) report that integrating wellbeing into the benefit package is their top strategic objective. Approximately half of employers (47%) also plan to increase flexibility and choice in their benefits, which is essential to meeting the needs and preferences of a diverse, multigenerational workforce. In addition, four in 10 employers globally (42%) are planning or considering tailoring their approach and personalizing outreach to specific segments of the workforce.
To support these personalization initiatives, roughly three-quarters of employers globally (74%) plan to have an enhanced digital strategy in place across their benefit programs in the next two years. An enhanced digital strategy can also serve as a differentiator when competing for talent in tight labor markets.
Mindful of having to achieve these objectives within certain constraints, over half (51%) of employers plan to optimize cost and risk management, and more than 44% plan to improve program efficiency.
Employers have set high goals in their efforts to achieve a differentiated and customized benefit strategy. Our Benefit Trends Survey, fielded in May and June 2021, examines the factors influencing their choices as well as the high-level trends in benefit design, financing, administration and analytics. The findings reveal the priorities and actions that can help make employers’ aspirations a reality.
Highlights and trends
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01
Benefit strategy
A range of internal and external factors are prompting employers to reshape their benefit strategy, driving a focus on the employee experience.
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Transforming benefits – Benefit portfolio
More employers are focusing on integrating wellbeing into the benefit portfolio. Additionally, they are looking to enhance broader benefits, including expanding flexibility and choice.
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03
Transforming benefits – The employee experience
Employers recognize the importance of deepening employees’ understanding and appreciation of their benefits through improved use of technology, manager support and enhanced communication.
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04
Transforming benefits – Benefit financing
Employers are focused on ensuring their benefit packages deliver value for money while cost control remains a major issue.
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Transforming benefits – Administration and operations
Employers are prioritizing internal efficiency. As a result, they are planning or considering assessing the performance of internal benefit operations as well as vendors and providers.
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06
Transforming benefits – Analytics, insights and reporting
To help ensure that they are offering relevant benefits, employers are looking to boost their analytics capabilities, especially their listening activities, including surveys and focus groups.
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Next steps for employers
Discover the measures that can help your organization thrive in a post-pandemic world as you look to reshape your benefit strategy to attract and retain talent.
About the respondents
Global research findings are based on responses from a total of 3642 employers representing 14 million employees around the world who participated in the 2021 Benefit Trends Survey. The survey was conducted during May and June 2021.
Download the report
| Title | File Type | File Size |
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| 2021 Benefit Trends Survey | 1.3 MB |
