Employers today have access to an unprecedented array of benefits options. The challenge is to tailor a package that meets the needs not just of their overall workforce but the specific needs of individual employees.

“Employee benefits have evolved from a one-size-fits-all proposition to an expansive ecosystem tailored to individual needs,” said Carl Chapman, vice president of benefit design and partnerships for Ben, a global flexible benefits platform. “The future lies in personalization, inclusivity and adaptability -- benefits that truly reflect the diverse and dynamic lives of today’s workforce. In short, the benefits market isn’t just growing; it’s transforming, paving the way for employers to create unparalleled value for their people and, equally importantly, for them.”

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Ben surveyed more than 1,200 businesses to compile its Global State of Benefits Report. The results offer several key insights:

  • Benefits engagement crisis. Although nearly two-thirds of global companies say improving employee engagement with benefits is a top priority, almost three-fourths report that employees' appreciation of benefits is low or average.
  • Lack of flexibility. Only 17% of organizations have a cohesive global benefits strategy, and nearly half don't offer flexible benefit choices despite growing demand for more personalized options.
  • Shift from wellbeing to foundational benefits: As costs rise, companies are pivoting away from wellbeing perks, such as fitness apps and mental health programs, in favor of more foundational benefits such as life and medical insurance.
One of the biggest challenges identified is the disjointed communication of benefits, particularly across global teams. Thirty-seven percent of companies communicate their benefits only once a year, and a large majority (70%) don’t have a unified benefits platform, which is contributing to low employee engagement.

Rising costs, particularly in medical insurance, are forcing companies to rethink their benefits strategy. Insurance premiums have increased by up to 70%, pushing employers to focus more on foundational benefits that are easier to measure in terms of ROI and less on wellbeing.

Researchers also made several predictions for the coming year

  • AI implementation in benefits design. Expect AI technology to play a bigger role in benefits design and delivery, helping organizations tailor offerings to employee demographics and individual needs, and improving engagement.
  • Legislative and tax reforms. Upcoming changes in federal paid leave and state-level minimum wages in the United States likely will lead to major shifts in benefits strategies and budgets.
  • Employee demographic shifts. As the workforce ages and employees balance caregiving responsibilities, there will be greater demand for flexible benefits packages, global benefit standard and more consultative services to meet evolving needs.
“This is an exciting time for benefits as companies refocus on what truly matters,” CEO Sebastian Fallert said. “In the face of economic uncertainty and tight labor markets, forward-thinking organizations are navigating the complexity of global benefits by harmonizing and streamlining programs. Meanwhile, we’re seeing AI and data emerging as transformative tools, unlocking access to benefits knowledge and empowering reward leaders to deliver highly impactful strategies.”

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Alan Goforth

Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.