Cost management remains top priority for employers
Employers across the world are failing to meet the strong employee demand for benefits personalisation amid prevailing cost management challenges, according to a new report.
Findings from Aon's2025 Global Benefits Trends Study have found that 65% of employees at multinational firms are willing to sacrifice some current benefits for a better choice of benefits.
Employees increasingly expect a consumer-grade experience when it comes to their benefits – one that offers meaningful choice, creates innovative solutions and aligns with their individual needs, said Michael Pedel, head of global benefits at Aon, in a statement.
However, the report found that only 14% of multinational companies have guidelines on how to introduce personalisation in benefits.
Another 43% of companies said the decision to introduce choice in benefits is generally a decision taken at the local country level.
Employers are making progress
But employers are slowly catching up, according to Pedel.
Findings showed that ensuring employee benefits are highly valued is the third-highest priority of organisations when it comes to benefits.
For some firms, this means embracing personalisation of benefits. For others, it could mean more varied and technology-forward communication about employee offerings and total reward,the report read.
Almost two-thirds of leading companies also said they plan to increase inclusive offerings, such as benefits focused on:
Families (54%)
Ageing (39%)
Gender (39%)
Employees at lower income levels (25%)
Companies are moving in that direction and communicating their progress, but must also manage the realities of cost and complexity,Pedel said.
Cost containment a top priority
Cost management remains the top priority for organisations worldwide, according to the report.
Ensuring efficient cost management is unsurprisingly the number one strategic priority across all segments, regions and most industries, rising from number three globally last year, the report read.
A quarter of leading companies planning to increase inclusive benefits said they would reduce levels for benefits that are less valued by employees.
More than three in four organisations also said they are negotiating with existing providers as part of their cost containment measures.
Pedel said organisations need to go beyond cost containment to deliver real value.
That means embracing personalisation, investing in inclusive benefits, leveraging data and analytics, and using technology and governance as strategic enablers. The companies that do this well aren't just managing benefits, they're shaping the future of work, he said.
https://www.hcamag.com/au/news/general/employers-not-catching-up-with-high-demand-for-benefits-personalisation-report/544413
