Transforming benefits – Benefit portfolio

Offering a competitive benefit package is critical in tight labor markets. A majority of employers globally (59%) believe they offer market competitive benefits, a figure that rises to 81% in the U.S. and 76% in Canada.

As competition for talent intensifies, it is essential to move beyond a one-size-fits-all benefit package and shape a benefit portfolio that addresses the individual needs of the workforce. Yet only two in five employers globally (39%) indicate that they offer such a portfolio.

Responding to the individual benefit needs of a diverse workforce requires choice and flexibility; however, only three in 10 employers globally (29%) report that they provide significant choice and flexibility in their benefits (Figure 1).

Employers in North America stand out from their global counterparts, with roughly four in 10 (39%) indicating they offer significant choice and flexibility. This is largely a result of the extent of spend on healthcare and the broad range of options from the perspective of design, networks and the like.

Setting priorities

Employers globally recognize that they have more work to do in the area of employee wellbeing, as only about a third (32%) consider their wellbeing support to be market leading or better. To address this issue, approximately two-thirds (65%) of employers expect to integrate wellbeing into the benefit portfolio in the next two years. Additionally, employers are focused on improving broader benefits, an area where one in five (19%) indicate their offerings are lagging.

Taking action

• Wellbeing. Integrating wellbeing into the benefit portfolio requires addressing all four wellbeing pillars — physical, emotional, financial and social — based on an understanding of an organization’s strengths and weaknesses in each dimension (see unlock more section).
  Respondents to our survey identified emotional wellbeing as their weakest area, with approximately a third of employers globally (34%) reporting weakness in their programs aimed at improving emotional wellbeing as the pandemic took its toll on mental health (Figure 2). Respondents in North America were the most likely to report weakness in this area, with 51% doing so.

Figure 2. Employers identify weaknesses and strengths over the past year

Because employers recognize the urgent need to help employees struggling with mental health challenges, emotional wellbeing emerges as their top wellbeing priority globally and across all regions (Figure 3).

Wellbeing priorities over next two years

A majority of employers globally (64%) plan to boost their support for mental health in the next two years. They have taken action and plan more actions in the areas of virtual mental/behavioral health (50%) and wellbeing apps (39%) during this period.

Employers are also taking action to support the other wellbeing pillars. Over half (54%) plan to improve their support for physical health in the next two years. Roughly two-fifths (41%) have taken steps to enhance online medical services and plan more actions in the next two years.

Broader benefits

To deliver value to a diverse workforce, over half of employers globally (52%) and roughly six in 10 in EMEA (58%) and LatAm (58%) are planning to add or enhance the choice and flexibility in their benefits over the next two years (Figure 4).

Additionally, four in 10 employers globally (42%) plan to enhance their voluntary benefits, perks and discounts in the next two years. This action has the most support from employers in Latin America where half plan to enhance these benefits.

The area where employers are lagging the most when it comes to broader benefits, child and elder care is also where employers are least likely to take action to improve their offerings. Roughly three in 10 employers globally (29%) report their child and elder care benefits are lagging behind those of other organizations. But roughly a fifth of employers globally (21%) are planning to add or enhance these benefits in the next two years.

Next section: Transforming benefits – The employee experience