The evolution of the benefits proposition

The world of work has drastically changed in the last decade and with this, so has the growing need to have ever more innovative and comprehensive reward offerings. The benefits space has seen some of the most tangible and visible changes during this time. And it is now a crucial tool to contribute to talent attraction and retention.

Here’s a round up of how things started, key drivers behind the changes and what the future holds.

The traditional benefits model

Core benefits a decade ago where typically centred around three pillars: private medical schemes, pension plans and additional risk benefits (such as life insurance, critical illness or group income protection).

Another key element in traditional models was lack of flexibility. Most companies offered employees no ability to choose what was meaningful for them. Any changes were reserved for more senior or longer tenured employees.

Key drivers of change

• Employee wellbeing: from a buzzword in the industry to becoming a critical building block behind most modern benefit strategies. Health and wellbeing are no longer seen in isolation or as something that can be addressed through one benefit only. Technology has also helped embed wellbeing in most strategies with a wide range of companies offering holistic and accessible support addressing mental, physical, emotional and financial wellbeing.
• COVID-19: although the most innovative companies were already on a journey to offer more flexibility to work arrangements, the pandemic had a worldwide impact on how companies and employees prioritise work-life balance. This can still be seen in the prevalence of remote or hybrid policies and benefits that support home office set ups.
• Technology: the role of technology in enabling change in the benefits landscape has been fundamental. Good examples include comprehensive wellbeing offerings, social platforms that provide ways of connecting those in remote environments or bots that help employees access information on their benefits offering.
• Diversity, Equity and Inclusion (DEI): from the one and only standard offering, the benefits world has steadily evolve to build flexibility and accessibility at the core of its programmes. Recognising the diverse needs of the workforce, the most innovative companies have adapted the design of their schemes in a holistic way to be reflective of this.

What the future holds

As we look ahead, these are the main trends to watch out for in the benefits market:

1. Continued aim for personalisation and for embedding DEI to target evolving needs, lifestyles and priorities.
2. Leveraging technology to support reach, accessibility and flexibility of programmes.
3. Using data for informing decision making, analysing cost impact or predicting benefit engagement.
4. Bringing employees on the journey. Like never before. Ensuring on-going feedback loops, open communications and transparency.

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