By Ashutosh Agarwal, Manager, Global Benefits, GoGlobal
The traditional employment model is undergoing a transformation, driven by changes in technology, employee expectations and global dynamics. Flexibility is becoming the norm, with workers pursuing multiple professional interests and new working models. At the same time, employee loyalty is increasingly linked to purpose-driven experiences.
To attract and retain top talent in this new era, organizations must rethink their approach to employee benefits, transforming them from a standard offering into strategic assets that enhance the employee experience.
In the past, employee benefits largely focused on basics like salary, bonuses, healthcare and paid time off. However, the landscape is rapidly changing as organizations recognize the need to offer more comprehensive and personalized support. For example, according to REBA Benefits Design Research 2024, about one-third of employers are planning to invest more in benefits technology, financial well-being, retirement planning and core benefits.
Despite this increased investment, there remains a significant gap between employer intentions and employee satisfaction. According to recent research from Mercer, pay and benefits continue to be the top reasons employees are attracted to an organization. They are also the top reason they stay. However, the study also found the number of employees who are planning to stay with their employer is only 68%. This result signals a significant flight risk for employers.
To remain competitive, companies must address the gap in employee satisfaction. In this blog post, we explore the top five emerging trends set to reshape employee expectations for benefits by 2030. These trends reflect a comprehensive approach, moving beyond traditional compensation to better serve the diverse needs of a multi-generational workforce.
Personalization: a tailored approach to benefits
As the workforce becomes more diverse, the demand for personalized benefits is growing. Employees increasingly value the ability to customize their benefits to fit their unique life circumstances. For instance, a study by MetLife revealed half of UK employees would sacrifice part of their salary for personalized benefits. Nearly 70% would work harder for an organization that provides tailored support.
The challenge for employers is clear: offering a one-size-fits-all package is no longer sufficient. By 2030, benefits will need to be adaptable, allowing employees to choose options that reflect personal and professional needs. This shift will not only enhance engagement and loyalty but also help attract talent in a competitive job market.
How to prepare for this future:
- Implement benefits that cater to different life stages and personal preferences.
- Use data-driven insights to offer customized benefits packages.
- Encourage flexibility by allowing employees to adjust their benefits throughout the year.
Well-being: prioritizing a holistic approach
Comprehensive well-being support is becoming a core component of the employer value proposition. Recent research published by Harvard Business Review found most employees expect their workplaces to support all aspects of their health. By 2030, a focus on holistic health and prevention will likely overshadow traditional reactive care.
Employers may encourage regular breaks, offer flexible work arrangements, create opportunities for connection and offer training programs on stress management. These can help employees maintain balance and avoid burnout.
How to prepare for this future:
- Promote Work-Life Balance: Offer flexible work arrangements, including remote and hybrid models, to help employees manage their professional and personal lives effectively.
- Encourage Professional and Personal Growth: Provide opportunities for employees to enhance their skills and overall well-being through comprehensive training and wellness programs.
- Adopt Technology-Driven Solutions: Utilize digital tools to streamline benefits access and support employees in managing their health and wellness needs.
Empowerment: supporting career growth and physical wellness benefits
As work structures become more autonomous, employees seek benefits that empower them to shape their career and life trajectories. This includes upskilling opportunities, career transition support and financial literacy programs.
Research from Morgan Stanley and TIAA shows that 65% of Gen Z employees expect companies to provide financial wellness support. To meet these expectations, employees may offer access to financial advisors and retirement planning tools.
Organizations that provide these resources empower employees to manage their professional and personal growth. This can foster a culture of continuous learning and development, boosting both retention and satisfaction.
How to prepare for this future:
- Offer upskilling and reskilling opportunities to future-proof employee skill sets.
- Promote financial independence with resources for budgeting, saving and investing.
- Support career development with mentorship programs and career transition assistance.
Impact: aligning benefits with purpose and values
By 2030, employees are expected to increasingly seek employers who support their personal goals and offer benefits that prioritize both well-being and flexibility. A study by McKinsey reveals that 70% of employees find purpose through work, highlighting the growing importance of meaningful engagement.
Forward-thinking organizations can meet these expectations by offering benefits that empower employees to live balanced, fulfilling lives while contributing positively to their work.
How organizations can prepare for this future:
- Offer Remote Work Options: By enabling employees to work from anywhere, organizations demonstrate trust and support for a modern, flexible lifestyle.
- Introduce Flexible Work Arrangements: Flexible hours and hybrid work options empower employees to achieve work-life balance and meet personal commitments.
- Unlimited PTO Policies: Providing unlimited paid time off ensures employees have the autonomy to recharge, prioritize mental health, and take the time they need to perform at their best.
By focusing on flexibility and autonomy, companies can cultivate a culture that aligns with employee values and drives long-term engagement and satisfaction.
Technology: enhancing access and engagement
Technology is set to revolutionize the way benefits are delivered and accessed. By 2030, connected devices, real-time access and digital twin technologies will enable seamless and personalized benefits experiences. However, current research from Mercer Marsh indicates that over a quarter of employees are dissatisfied with their employer’s benefits platform, highlighting a significant opportunity for improvement.
Embracing advanced technologies such as artificial intelligence (AI) and digital platforms will allow employers to provide intuitive, engaging benefits experiences.
How to prepare for this future:
- Use real-time data to optimize benefits investments and track employee satisfaction.
- Leverage AI to personalize benefits recommendations and streamline the selection process.
- Explore the potential of emerging technologies like digital twins and the metaverse.
Preparing for the future of employee benefits
The future of work demands a human-centric approach to employee benefits, especially global benefits being offered across borders. By embracing well-being, career growth, and technology, companies can create benefits that truly resonate.
As we approach 2030, the emphasis will turn to crafting meaningful, flexible and impactful benefits. These benefits not only attract top talent but also boost long-term engagement and loyalty. Organizations that proactively adapt to these shifts will thrive in a fast-changing employment landscape – meeting the diverse expectations of tomorrow’s workforce.
Contact us today to discover how the GoGlobal Global Benefits Team can help you design an employee experience that fuels business expansion and hiring.