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Companies Struggle to Meet Rising Demand for Personalized Benefits

A significant shift is occurring in the realm of employee benefits as multinational companies face increasing pressure to provide personalized and inclusive options tailored to their workforce's diverse needs. A recent report released by Aon plc, titled the 2025 Global Benefits Trends Study, paints a concerning picture of how prepared companies are to meet this demand. The survey, which gathered insights from over 500 global benefits professionals across 45 countries and spanning 16 different industries, discovered that merely 14% of multinationals have established global guidelines for personalization.

Employee Expectations vs. Company Preparedness

Despite the lack of foundational support for personalization, a striking 65% of multinational employees stated they would be willing to exchange their current benefits for more diverse and customized options. This disparity illustrates a pressing contradiction: while cost management remains the predominant concern for 70% of companies—overtly driven by medical inflation—prioritizing employee value through personalized offerings has surged to become one of the top three goals among benefits leaders.

This new landscape presents unique challenges for global benefits leaders who must balance rising employee expectations for tailored solutions with the ongoing pressures of managing costs efficiently. In response, 77% of survey participants indicated intentions to negotiate benefits costs with existing vendors, while 67% plan to issue requests for proposals (RFPs) to explore new vendor options.

Shifts Towards Personalization and Inclusion

The concept of employee value is expanding, with a growing focus on personalization that encompasses inclusive benefits reflecting the varied needs of the modern workforce. Notably, nearly two-thirds of progressive companies, characterized by mature governance and robust data strategies, are planning to broaden their offerings concerning family-oriented benefits (at 54%), support for aging employees (39%), gender considerations (39%), and provisions aimed at lower-income employees (39%). In an effort to manage costs, about 25% of survey respondents suggested they would consider scaling back benefits that employees don’t find particularly valuable. These developments reflect a broader transition, as employees increasingly demand benefits that not only resonate with their individual circumstances but also align with their core values.

Moreover, there is a growing integration of personalized benefits with overall wellbeing strategies, with 37% of organizations exploring initiatives aimed at harmonizing health and work-life balance.

Challenges in Scaling Personalized Offerings

While the demand for personalized benefits continues to accelerate, many companies are confronted with structural and operational challenges that impede their ability to roll out these offerings effectively. Although nearly half of the companies surveyed reported having a global benefits strategy in place, only 25% of global benefits leaders felt their governance framework enabled them to achieve their goals. This gap highlights that organizations with successful implementation strategies typically possess three times as many formal governance committees and double the likelihood of centralized data and decision-making, leading to greater cost savings and stabilized benefits delivery.

Leading companies are also 67% more likely to have Global Benefits Centers of Excellence and three times as likely to have their global benefits strategies vetted and endorsed by senior management, resulting in higher levels of internal support.

The Role of Technology in Enhancing Benefits Delivery

As the demand for personalized experiences soars, technology has emerged as a vital asset in delivering employee value while simultaneously optimizing costs. Surveys indicate that top-performing companies are more than twice as likely to deploy technological solutions to achieve personalization in their benefits offerings. Despite this, only one out of six benefits teams currently employs AI to assist in crafting or delivering benefits. However, it is projected that this figure will nearly triple by 2027, suggesting that advancements in technology may eventually help overcome current barriers, despite being stymied by outdated systems and governance obstacles.

Michael Pedel, Aon's head of global benefits, summarized the findings succinctly, stating, "This year's study confirms what many global benefits leaders already sense: expectations are rising, but the tools and governance to address them haven't evolved at a similar pace. To generate real value, organizations must look beyond merely curbing costs. This entails embracing personalization, making investments in inclusive benefits, and using data and technology as strategic enablers. The firms that successfully navigate these challenges are not just managing benefits; they are actively shaping the workforce of tomorrow."

Conclusion

As outlined in Aon’s comprehensive study, the future of employee benefits is multifaceted, driven by a need for personalization and inclusivity. Companies that can successfully integrate these elements into their benefits strategy stand to benefit markedly, not only in terms of employee satisfaction but also in cultivating a competitive edge in talent retention and acquisition. The time for multinational companies to act is now, as the race to meet employee expectations continues to intensify.