When updating their benefits program, some employers may be hesitant to cut offerings due to a lack of clarity around which benefits are most valued by employees, says Grant Boissonneault, assistant vice-president and relationship lead at Aon.
“While benefits programs are intended to support employee well-being and engagement, organizations often rely on assumptions or outdated data when evaluating their value. Without regular feedback, it can be difficult to distinguish between benefits that are genuinely appreciated and those that go under-utilized.”
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Indeed, a recent survey by Aon found 70 per cent of multinational employers said cost management is their No. 1 priority for their benefits program, with medical inflation cited as the key cost driver. Nearly eight in 10 (77 per cent) said they plan to negotiate their costs with existing benefits vendors and 67 per cent plan to issue a request for proposals for benefits vendors. However, just one in four (25 per cent) said they’d reduce benefits to balance the cost of new offerings requested by employees.
The survey, which polled more than 500 employers, found only 14 per cent said they have global guidelines in place to support personalization, while 65 per cent said their employees would trade their current benefits for more choice.
While cost management is the top priority for multinational employers, with medical inflation cited as the key cost driver, delivering employee value has surged to the forefront of the strategic agenda, now ranking among the top three objectives for benefits leaders.
Read: 73% of employers say rising benefits costs a top issue in 2025: survey
Employers noted among the most requested offerings by employees were those that support families (54 per cent), ageing (39 per cent), gender (39 per cent) and employees at lower income levels (39 per cent).
The survey also found only one in six benefits teams currently use artificial intelligence to support benefits design or delivery. While that figure is expected to nearly triple by 2027, adoption is still limited by legacy systems, governance challenges and organizational readiness.
To manage costs more effectively, companies could benefit from more frequent employee surveys and data-driven reviews of benefits usage and satisfaction, says Boissonneault. “By understanding employee preferences in real time, organizations can make more confident decisions about which benefits to retain, enhance or phase out.”
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