Benifex, a global employee benefits platform, has released a new study that reveals a “Values Vacuum” in current benefit provisions. Over three quarters (79%), of employers have invested more in benefits over the past year. However, for 62% of workers this investment has not translated into value.
There is a further disconnect between employer and employee perceptions: 90 percent of HR leaders think their offerings make a significant difference in people’s lives, but only 69% agree.
Benifex’s research, based on more than 3,00 interviews with employers and employees worldwide, suggests that, despite well-intentioned investment, it often falls short. Many employees are still confused about their rights and how to get the help they need.
Key findings: Expectations skyrocketing and unclear value
Employee expectations are increasing, and workers see benefits as an integral part of their employee experience.
- 85% employees believe that benefits should be easier to understand, change and access.
- 81% think their employers should provide more support for cost of living.
- 81% want to be able to change their benefit package as their circumstances change.
- 71%say that the benefits they receive from their employer are more important than two years ago.
Employees expect packages that are tailored to their priorities, life stage and financial reality.
Key findings: Employers are turning to technology to meet demand
As a result, organizations are turning to technology – including AI – to support their benefit strategy.
- Today, 46% employers use benefit platforms (compared to only 14% a year ago).
- 96% think AI will be a major factor in meeting employee expectations.
- 57% say that AI has revolutionised the way they work.
According to the study, organisations that use a benefits platform are able to better track their investment and impact. They can also align benefits with corporate values and meet worker expectations.
North Star – Make value of your benefits
Benifex suggests that ‘value’ be the north star of your benefits strategy to help close this perception gap. It means that every benefit-related decision or initiative should be viewed through the lense of employee relevance and impact.
This approach is based on personalisation. Karen O’Neill highlights the link between perceived value, and personalization. An employee benefit that’s completely irrelevant for 98% of employees could be life-changing to a select few. Consider fertility treatment. Our perception of value is influenced by our personal situation and life stage.
“Value often comes down to delivering the best benefit at the perfect time, with the help of relevant communication and easily accessible information,” she adds.
AI as a value-first enabler
Benifex data shows that AI will be a major factor in delivering a value-first strategy. It will not only help personalise the benefits but also offer smart search features to help employees find the content that is most relevant for their needs.
“AI is a critical tool for closing the expectations gap and helping employees understand the value their benefits”, says Matt MacriWaller, founder & CEO of Benifex. He adds that the AI will give employees all the information they need to take informed decisions.
