Nearly half (46 percent) of multinational employers plan to increase their use of AI to enhance their benefits management and strategies, research has revealed.
The survey, from Towers Watson, a WTW business, found multinational employers are expanding the use of employee-facing technology to improve benefits navigation and decision-making.
Greater personalisation of employee benefits is a key driver behind using AI as employers prioritise employee physical, mental and financial health.
The survey of 264 global organisations found that employers view the strategic use of AI and employee data as a key way to create more personalised and effective benefits. This can be enhanced by using AI to manage employee data, workforce support and operational efficiency.
Research results showed that 52 percent of global employers consider the use of data-driven insights a high or top priority for enhancing the employee benefits experience.
Towers Watson said that companies are “homing in on using benefits to signal their company’s mission, purpose and employee value proposition”, to ensure the way they look after their people aligns with their outward-facing vision. Researchers said that the majority of multinational employer’s headquarters are prioritising raising employee awareness of benefits.
Nigel Bateman, managing director, global HQ solutions at Towers Watson, said: “Benefits have become valuable to employees, investors and leaders because they both support employees’ all-around health and signal what a company stands for. They are powerful symbols of a company’s identity and purpose.
“Conversely, it can really undermine what a company stands for when benefits are viewed as little more than a hygiene factor.”
He said that leading companies are getting involved at headquarter level, including setting global minimum standards.
Benefits reflect company values
“Importantly, more and more are making use of advanced technologies to elevate their benefit strategies and data insights to really listen to their employees. Benefits and wellbeing programmes are no longer a ‘nice to have’, they’re becoming a reflection of a company’s values.”
The survey results, detailed in the consultancy’s Global Priorities for Employee Benefits report, identified more strategic priorities around talent, cost control and the use of benefits across borders.
Almost two thirds (65 percent) of employers said that benefits are important to differentiate themselves from their competitors to attract, retain, and engage employees.
Three-quarters (75 percent) said cost and spending control was a key focus, with 58 percent “actively involved” in managing benefits costs, with a view to focus spending on areas that matter most to employees.
Cross-border approaches were another area of strategic focus. Fifty percent of multinational employers plan to use a cross-country approach to manage their employee benefits strategy in the future. This approach is expected to span life insurance, healthcare, retirement and savings plans.
Raising awareness of benefits was another area of focus for employers in the survey with 79 percent planning to boost their benefits communications and employee engagement.
Researchers found that aligning benefits with companies’ broader diversity, equity and inclusion (DEI) and environmental, social and governance (ESG) policies is a key priority for 52 percent of respondents.
Leaders at the headquarters of multinational firms are getting more involved in benefits management and strategy. Seven in ten (70 respondents) multinational HQs are using global minimum standards and leading HQs are more involved in directing local decisions around benefit design.
Gaby Joyner, Europe head of employee experience at Towers Watson, said: “To bridge the gap between what companies offer and what employees want, employee listening programmes are vital. Better understanding of employee needs and wants ensures money can be spent on what matters to employees.
“Companies need to actively promote their benefits programmes and what they mean, around the world. And they need to improve employees’ understanding and engagement with benefits to make a consumer grade employee experience.”
