U.S. employers to rethink employee benefit strategy, Willis Towers Watson survey finds
September 08 2021 - 9:43AM
The war for talent; heightened focus on diversity, equity and
inclusion (DEI); and rising benefit costs are fueling a surge in
companies planning to revamp their employee benefit strategy. Their
goals are to differentiate themselves, personalize the employee
experience and manage the costs of their benefit
programs. That’s according to a new survey by Willis Towers
Watson (NASDAQ: WLTW), a leading global advisory, broking and
solutions company.The 2021 Benefits Trends Survey found that more
than two-thirds of employers (69%) plan to differentiate and
customize their benefit programs over the next two years, a sharp
increase from just 23% today. Nearly three in four respondents
(73%) cite an increased focus on DEI as driving their benefit
strategy, followed by tight labor markets (53%) and rising benefit
costs (50%).
“Amid the ongoing pandemic, employers are under increasing
pressure to manage their benefit costs while at the same time
finding new ways to support their employees’ overall wellbeing,”
said Jennifer DeMeo, senior director, Retirement, Willis Towers
Watson. “Additionally, tight labor markets and a growing emphasis
on DEI are causing employers to look at their benefit strategies in
a new light. As a result, many are now planning actions to enhance
their benefit programs to create a competitive advantage.”
Indeed, only half (51%) of employers believe their benefit
programs address the individual needs of their workforce, and even
fewer (39%) offer significant flexibility and choice in benefits.
Additionally, while eight in 10 employers (81%) say they currently
offer competitive benefits overall, only a quarter of respondents
(26%) rate their wellbeing benefits as market leading or better
than other organizations. Less than half (47%) consider their core
benefits (health care and retirement) to be better than other
employers’ benefits.
Growing emphasis on integrating employee
wellbeingMore than two-thirds of respondents (69%) say
integrating employee wellbeing into the benefit package will be the
top strategic benefit objective over the next two years. Most
employers (86%) cite employee emotional wellbeing as their top
priority over the next two years, followed by physical wellbeing
(68%) and financial wellbeing (67%).
According to the survey, employers are taking steps to support
their employees’ health and wellbeing in four main areas:
- Physical: Over three in four employers (77%)
have added or enhanced online and virtual medical services, and
over half (53%) plan to add more or enhance them in the next two
years.
- Emotional: 73% of employers plan to boost
their support for mental health (stress, burnout and
depression).
- Financial: Nearly half of employers (47%) plan
to add or enhance their support for financial wellbeing (savings,
budgeting, loans and counseling).
- Social: More than a quarter of employers (29%)
plan to add or enhance support for social wellbeing (charitable
donations, volunteer opportunities and social recognition).
The survey also revealed less than three in 10 employers (28%)
believe their benefit programs enhance employee appreciation of the
employment deal, and many are taking steps to boost support and
communication. Over one-third (34%) are planning or considering the
use of digital tools and technology to help employees feel
connected and be productive; over half (52%) are planning or
considering the use of personalized communication to specific
segments of the workforce.
“Fostering employee wellbeing and resilience will remain a top
employer priority for the foreseeable future,” said Julie Stone,
managing director, Health and Benefits, Willis Towers Watson.
“Employers would be wise to start with a review of Total Rewards
strategies. Their challenge will be to develop an equitable
approach that meets the needs of all workforce segments while
aligning benefits, culture and other rewards with new ways of
working and an enhanced employee experience. This will be
critically important for employers to be able to manage benefit
costs and optimize their investment in benefits.”
About the survey
The 2021 Global Benefits Trends Survey was conducted during May
and June 2021. Results of the survey are based on responses from a
total of 3,642 employers globally, including 359 U.S. employers
with five million employees.
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global
advisory, broking and solutions company that helps clients around
the world turn risk into a path for growth. With roots dating to
1828, Willis Towers Watson has 45,000 employees serving more than
140 countries and markets. We design and deliver solutions that
manage risk, optimize benefits, cultivate talent, and expand the
power of capital to protect and strengthen institutions and
individuals. Our unique perspective allows us to see the critical
intersections between talent, assets and ideas — the dynamic
formula that drives business performance. Together, we unlock
potential. Learn more at willistowerswatson.com.
Media contact:Ed Emerman: +1 609 240 2766
eemerman@eaglepr.com
Willis Towers Watson Pub... (NASDAQ:WLTW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Willis Towers Watson Pub... (NASDAQ:WLTW)
Historical Stock Chart
From Apr 2023 to Apr 2024