Nearly half (46%) of multinational headquarters are prioritising expanding the use of employee-facing technology, including AI, to support benefits management, according to a survey by Towers Watson.
Additionally, more than half (52%) of multinational HQs consider the use of data-driven insights a high or top priority for enhancing the employee benefits experience.
Towers Watson said the strategic use of advanced technology and employee data can create more personalised and effective benefits strategies with a particular focus on the use of AI to support data management, employee support and operational efficiency.
The WTW subsidiary said firms are homing in on using benefits to signal their company's mission, purpose and Employee Value Proposition, to ensure the way they look after people aligns with their outward-facing vision, with the majority of multinational headquarters prioritising raising awareness of benefits.
WTW surveyed 264 global organisations across a broad range of industries between September and October for the survey.
“Benefits have become valuable to employees, investors and leaders because they both support employees’ all-around health and signal what a company stands for," said Nigel Bateman, managing director of global HQ solutions at Towers Watson.
"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.
“Leading companies are getting involved at headquarter level, including setting global minimum standards. 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.”
Other strategic focuses include talent attraction and retention. Two thirds (65%) of respondents noted that benefits are important for differentiating the company as an employer to attract, retain and engage staff.
Three quarters (75%) of HQs focus on cost management, with 58% actively involved in benefits cost budgets, with a look to focus spend on the areas that matter most to employees.
Companies plan to elevate their benefits, with 79% focused on promoting benefits and raising awareness while engaging employees.
Aligning benefits with companies' broader diversity, equity and inclusion (DEI) and environmental, social and governance (ESG) policies is also a key priority for a majority (52%).
Some 70% of multinational HQs are using global minimum standards and leading HQs are more involved in directing local decisions around benefit design.
There is also an increasing trend to use cross-country approaches to manage benefits strategy (across life insurance, healthcare, retirement and savings plans), with 50% of HQs looking to implement this in the future.
“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," said Gaby Joyner, Europe head of employee experience at Towers Watson.
“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.”
(Pic: Getty Images)
