Download the report: MAXIS GBN Global Perspectives - In the changing world of employee benefits, does one size still fit all?
Multinational businesses that fail to offer more flexible employee benefits (EB) packages will struggle to attract and retain staff in an increasingly competitive market for talent according to a new report1 from MAXIS Global Benefits Network. The report looks in-depth at the subject of flexible and tailored EB packages and asks the question: in the changing world of employee benefits, does one size still fit all?”
According to the report, the rise of flexible, tailored and personalised EB is due in part to the highly sophisticated options now commonplace at US technology firms, particularly those based in Silicon Valley. More broadly, cultural shifts in the workplace and wider society such as part-time and flexible working patterns, multi-generational workforces, gender and cultural diversity and changing employee expectations are also all resulting in the need for more flexibility in employee benefits strategies.
Previous research2 commissioned by MAXIS GBN among global EB professionals found a significant contradiction in the EB industry: almost three quarters (72%) said their current employee benefits arrangements are based around a one-size-fits-all strategy, yet more than four in ten (44%) said this model is inappropriate for the changing needs of their staff.
As well as this, more than two fifths (43%) said over the next two years multinationals will see an increase in demand for flexible benefits provision. Almost half of those surveyed said high-quality recruits value schemes designed around individual needs, while a similar number (49%) said their firms were looking to invest in data and digital tools to make the process of providing employee benefits simpler and more efficient.
Mauro Dugulin, CEO of MAXIS GBN, says: “Multinational technology companies are leading the way by offering highly flexible and tailored employee benefits packages for their employees. By offering benefits that cater for the changing medical, financial and lifestyle needs of their employees, these forward-thinking businesses are able to attract and retain a highly-skilled, diverse workforce. This ‘Silicon Valley effect’ is paving the way for multinationals the world over to think differently about the benefits they are offering and consider that they may need to adopt a more flexible approach.
“With multiple generations in the workforce who all have different needs from their benefits packages, employees are interested in choosing benefits that suit their personal lifestyle now rather than wanting a standard package. Flexible benefits that can be personalised are key to the success of attracting and engaging the workforce of now and the future.”
According to the report, data and new technologies will underpin the delivery of a successful global benefits programme. It’s the sheer power of modern technology such as cloud processing and artificial intelligence that is driving trends and progress: near limitless number crunching capabilities are now available, meaning that employers can successfully price risk, work through benefits variables and report on ‘what-if’ scenarios as they have never been able to before.
Mauro Dugulin adds: “One of the fastest-growing areas in employee benefits delivery is the availability of online benefits platforms. These cloud-based platforms bring together all of an employee’s benefits into a single application, which can be accessed from any device anywhere in the world, so they can easily manage their entitlements.
“Employers can access the data created by the platform, enabling them to analyse patterns and insights into the take-up and usage by their teams, which allows them to understand more about which benefits different employees value. Many of these digital platforms have the capability to provide a subscription-based or ‘build your own’ benefits programme, where employees have a set amount of money to use to choose from a range of benefits – making the idea of truly tailored and personalised benefits possible.”
The power of data analytics also means organisations will increasingly be able to better manage costs and understand where their employee benefits budgets are being spent, identifying where they can make reductions without jeopardising the value that the benefits bring to their employees.
Mauro Dugulin concludes: “Employees’ expectations and needs are shifting, and global employers need to move with the times to ensure their EB strategy delivers the most valued benefits to their employees.”
1 Download the report: MAXIS GBN Global Perspectives - In the changing world of employee benefits, does one size still fit all?
2 MAXIS GBN conducted research with 216 employee benefits professionals between 20th and 31st January 2018 based across the world. The research was undertaken online by an independent third party. Of the 216, 70% described themselves as the final decision-maker at their organisation and 79% said they work for a multinational/ multi-jurisdictional company
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This document has been prepared by MAXIS GBN and is for informational purposes only – it does not constitute advice. MAXIS GBN has made every effort to ensure that the information contained in this document has been obtained from reliable sources, but cannot guarantee accuracy or completeness. The information contained in this document may be subject to change at any time without notice. Any reliance you place on this information is therefore strictly at your own risk.
About MAXIS GBN MAXIS Global Benefits Network (MAXIS GBN), co-founded by MetLife and AXA in 1998 is one of the leading international employee benefits networks providing global service capabilities and delivering world-class employee benefits perspectives and solutions to clients in over 120 markets around the world. In February 2016, MetLife and AXA further strengthened their relationship by combining all of its MAXIS GBN existing operations under a joint venture company. This transformation helps leverage the existing strength of the network and its two parent companies while further enhancing the client experience, focusing on product innovation and providing data analytics. For more information, please visit www.maxis-gbn.com
The MAXIS Global Benefits Network (“Network”) is a network of locally licensed MAXIS member insurance companies (“Members”) founded by AXA France Vie, Paris, France (AXA) and Metropolitan Life Insurance Company, New York, NY (MLIC). MAXIS GBN, registered with ORIAS under number 16000513, and with its registered office at 313, Terrasses de l’Arche – 92 727 Nanterre Cedex, France, is an insurance and reinsurance intermediary that promotes the Network. MAXIS GBN is jointly owned by affiliates of AXA and MLIC and does not issue policies or provide insurance; such activities are carried out by the Members. MAXIS GBN operates in the UK through UK establishment with its registered address at 1st Floor, The Monument Building, 11 Monument Street, London EC3R 8AF, Establishment Number BR018216 and in other European countries on a services basis. MAXIS GBN operates in the U.S. through MetLife Insurance Brokerage, Inc., with its address at 1095 Avenue of the Americas, NY, NY, 10036, a NY licensed insurance broker. MLIC is the only Member licensed to transact insurance business in NY. The other Members are not licensed or authorised to do business in NY and the policies and contracts they issue have not been approved by the NY Superintendent of Financial Services, are not protected by the NY state guaranty fund, and are not subject to all of the laws of NY.