In the next three years, more than half (57 per cent) of global employers plan to reallocate or rebalance their benefits spend, adding or enhancing some benefits (23 per cent) while reducing or removing others (two per cent), according to a new survey by WTW.
The survey, which polled more than 5,500 global employers, found more than half (55 per cent) said mental health is their No. 1 benefits priority, followed by getting the best value (51 per cent), health benefits (47 per cent), financial well-being (33 per cent) and retirement benefits (24 per cent).
More than two-thirds of employers cited benefits costs as the top factor shaping their benefits strategy. Respondents also cited competition for talent, employee expectations for an enhanced experience and cost of living as additional factors shaping their benefits plans.
Read: How the coronavirus pandemic continues to shape benefits plans
While two-fifths (38 per cent) of employers described their benefits choice as either moderate or high, that percentage is projected to double to 76 per cent by 2028.
“Employers are looking to redesign their benefits to allow meaningful choice,” the survey noted. “This could include providing voluntary benefits or allowing optional enhancements to current benefits to full flexible benefit allowances.”
The majority of employers said they’re planning significant investments in benefits navigation (63 per cent) and technology solutions (59 per cent) to better support the user experience of employees through benefit portals, modelling tools and automated features.
While identical percentages of employers said they currently engage in either basic or advanced benefits reporting (40 per cent each), the survey found a third said they plan to move to cost forecasting (32 per cent) and risk analytics (29 per cent) within the next three years.