Employee expectations are rapidly evolving, compelling companies to recognise the importance of a benefits strategy that isn’t one-size-fits-all but rather tailored to individual needs and life stages.
Our 2024 Mind the Gap Survey found that 68% of employees would like more flexibility to pick and choose their benefits [1].
Choosing to take a personalised approach to employee benefits shows employees that their individual needs and circumstances are valued, this can enhance engagement and improve retention. But how can companies achieve this aim?
1. Leverage Technology for Customised Benefits
Benefits technology is transforming how benefits can be delivered both for the employer and employees. Companies can gather insights on employee preferences, track engagement with different benefit offerings, and provide options that best suit individual needs. Many companies are introducing online benefit portals where employees can have more autonomy over their benefits, selecting and managing them based on their personal situations.
Each workforce will likely be made up of employees in various life stages, and using technology can provide tailored benefits to suit these differing needs. For example, if an employee consistently uses wellbeing resources but not childcare support, the system can recommend resources that align with their wellbeing goals and provide data that allows companies to make more informed decisions.
Giving employees the control over their benefits can allow them to feel empowered to make changes whenever they need, making them more likely to feel satisfied with their benefits package – and choose to stay with the company. Online portals and mobile apps enable employees to make changes whenever they need. For some employees, the digital format also makes relevant information readily available.
2. Offer Flexible Benefits Packages
One of the most impactful ways to personalise a benefits strategy is by implementing a flexible benefits plan. The Flex Fund approach to benefits could be seeing a revival – it provides an adaptable way for employers to allocate a set budget to employees, allowing them to select benefits they find most valuable.
Offering flexible benefits allows companies to maintain a high-quality offering whilst optimising spending and leaving core benefits intact. Employees also gain a more personalised and meaningful experience with their benefits.
A varied demographic inevitably requires varied support. Enabling employees to pick and choose from a range of options within a predetermined budget can allow companies to manage costs, reduce staff-turnover and improve employee morale.
3. Focus on Holistic Wellbeing
Today’s workforce values a holistic approach to wellbeing; our 2024 Mind the Gap Survey found that employees need more support with their physical, mental, and financial health [1].
Companies can personalise their approach to benefits by offering a diverse range of wellbeing options, allowing employees to select the support that aligns with their personal goals. Employers might consider offering mental health resources like counselling sessions or meditation app subscriptions, alongside fitness perks and financial planning tools which appeals to a wider range of individual needs.
A personalised approach to wellbeing programs could significantly enhance employees’ quality of life and reduce stress, ultimately improving productivity and engagement.
These insights demonstrate the need for robust wellbeing packages that focus on a range of wellbeing options, this could not only foster a healthier workforce but create a culture that values employee wellbeing.
4. Provide Learning and Development Opportunities
Prioritising a personalised approach to employee benefits can extend beyond traditional offerings such as private medical insurance and pensions, it also includes opportunities for professional growth.
Providing customised learning and development opportunities for employees can allow companies demonstrate their recognition for the diversity of their workforce, showing commitment to employees’ career progression. Employers can offer access to online courses, certifications, and coaching sessions that employees are able to select based on their unique career goals.
5. Consider Lifestyle Benefits
Lifestyle benefits have become increasingly popular as employees seek a better work-life balance; our research showed that 23% of employees currently struggling to manage the balance of work and life [1].These benefits might include options like remote work flexibility, paid time off for volunteer work, pet insurance, or family care benefits. Offering choices that accommodate different lifestyles and life stages, can allow employers to create a benefits package that truly resonates with individual employees.
For example, one employee may not prioritise eldercare benefits but would value additional annual leave or financial wellbeing programs. Meanwhile, employees with families may appreciate support for childcare, eldercare, or even discounted family day out passes.
Nearly a quarter of employees feel dissatisfied with their benefits [1]. Offering perks like local coffee shop discounts or salary sacrifice for extra annual leave demonstrates an employer’s commitment to wellbeing and work-life balance in a tangible way. Unlike future-focused benefits, these immediate, impactful options resonate with employees in their day-to-day lives.
6. Regularly Collect Feedback and Adjust Accordingly
Companies should regularly survey employees on their benefit needs and preferences and be open to adjusting offerings based on feedback. Implementing quarterly or biannual feedback sessions can help HR teams stay updated on emerging and evolving employee needs.
Additionally, creating open channels for ongoing feedback ensures employees feel heard. Reviewing survey insights alongside industry trends allows companies to proactively adapt benefits to stay competitive and relevant, ensuring they can retain and attract top talent.
A personalised benefits strategy isn’t just about offering more options; it’s about understanding the unique needs of your employees and recognising the diversity of your workforce.
What can employers do now?
As almost half of employees would leave their role for one with better benefits [1], it’s important for companies to focus on ensuring their benefits are meeting expectations:
- Understand the needs of your workforce
- Gather feedback from employees
- Create a plan to ensure that your benefits package suits individual needs
[1] 2024 Mind the Gap Survey
