Global employers face growing pressure to deliver personalised, inclusive benefits, but most lack the governance and tools to make it happen at scale, according to Aon’s latest Global Benefits Trends Study.
Almost two thirds (65 percent) of employees at multinational firms want more choice, but just 14 percent of companies have the structures and guidelines in place to deliver it.
The survey of more than 500 global benefits professionals across 45 countries also found that 70 percent of employers said cost management was their top priority as medical inflation continues to drive up prices. This could be tough given a key strategic objective for benefits leaders is to deliver employee value. Aon said the disconnect highlights a new challenge for benefits leaders who must meet rising employee expectations for flexibility while managing escalating costs.
To manage spend, 77 percent of respondents said they plan to negotiate with existing benefits vendors, and 67 percent intend to issue requests for proposals (RFPs).
“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. “Companies are moving in that direction and communicating their progress, but must also manage the realities of cost and complexity. The opportunity lies in designing programmes that deliver both value and efficiency at scale.”
Personalisation is expanding to cover inclusive benefits, reflecting today’s diverse workforce. Among leading companies (firms with mature governance structures and integrated data strategies) 54 percent plan to expand benefits focused on families, while 39 percent are targeting support around aging, gender, and lower-income employees. To balance spending, 25 percent said they will reduce the number of less‑valued benefits they offer.
Wellbeing has also moved further up the agenda, with 37 percent of companies actively considering initiatives that integrate health and work-life balance.
However, structural challenges are putting a dampener on change. Nearly half of companies already have a global benefits strategy, but only 25 percent say their governance structures allow them to deliver effectively.
In contrast, organisations classed as ‘leading’ are three times more likely to have formal governance committees and twice as likely to centralise data and decision-making, the survey found.
Technology could help close the gap as leading companies are more than twice as likely to use technology to personalise benefits. In spite of this AI adoption is still low as just one in six benefits teams currently use it. However, that adoption figure is projected to nearly triple by 2027.
“This year’s study confirms what many global benefits leaders already feel, expectations are rising, but the tools and governance structures to meet them haven’t kept pace,” Pedel said. “To deliver real value, organisations must think beyond cost containment. That means embracing personalisation, investing in inclusive benefits, leveraging data and analytics, and using technology and governance as strategic enablers.”
