American scientist and futurist Roy Amara coined this phrase in the 1960s or 70s, which has since become known as “Amara’s Law”. His thinking was that new technology receives such hype in the early years of adoption that potential flaws are overlooked and people think it will be immediately revolutionary. But as people realise it might take longer, flaws are exposed and excitement starts to dwindle, the long-term positive impacts are then often under anticipated.²

“But what does this mean in terms of employee benefits?”, we hear you ask.

The last decade has been transformative in the world of global employee benefits (EB), as traditional work patterns have changed, the gig economy has boomed and we’ve dealt with a pandemic. All of this has left workers expecting more from their benefits. Just like every industry, new technology is opening a whole world of possibilities in the EB space and helping employers respond to some of the challenges they’re facing. Naturally, there’s lots of excitement about how new technology will improve all our lives.

But are we overestimating the potential to change the industry in the short-term? And will that lead to us underestimating the potential tech has to reshape the future of EB in the long-term?

In this Viewpoint we will look at some of the technology that is changing the world of employee benefits. Although we could talk tech all day, this time we will focus on three key areas: delivering flexible and voluntary benefits, non-traditional workers and data analytics.

With this clear demand for flexible and voluntary benefits, the case for EB platforms and management software keeps growing. As workers are used to using apps and digital solutions in every area of their life, it’s not surprising their expectations are no different when it comes to choosing their employee benefits packages.

Willis Towers Watson UK says, “we are starting to see a clear trend towards a consumer-style tech experience in the delivery of employee benefits. This will accelerate as time-demands and expectations from employees become ever greater.

“From an employer perspective, this aspiration must be married with the desire to maximise value, while, at the same time, keeping a tight control on administrative or technical complexity and costs.

“Forward-thinking employers need to keep a close eye on how their benefits and total reward strategies are designed, financed and delivered to ensure they keep pace with emerging developments.”⁵

And technology is making it even easier to provide more choice for their people. There’s a whole host of cost-effective, digitally provided benefits, that might fall outside the more traditional packages, focusing on almost every area of people’s lives – from physical, mental and social health, to financial wellness and more.

Allowing your people to choose these, as and when they are most appropriate, has never been easier. Platforms provide workers with the flexibility to build their own benefits package from a menu of options. Is that the future?

And flexibility doesn’t end with permanent employees. Technology is making it ever more possible for people to leave these more traditional working patterns behind and embrace greater flexibility.

A global study by Mastercard projected that by the end of 2023, the number of freelance workers would increase to 915 million and the global gig economy to 78 million (up from 43 million in 2018).

As employee benefits professionals, we’re well aware of the importance of providing the right protections for all employees – permanent and otherwise.

Yet, the gap in the provision of protection for non-traditional workers is alarming. Many people in these roles don’t meet the requirements for statutory benefits schemes and in our October 2021 research we found that...

Is this an area that employers could or should focus on? By providing some protection benefits or offering non-traditional workers the opportunity to purchase benefits at a subsidised rate, multinationals have the opportunity to offer something that would be truly valuable.

Of course, there are complex local regulations that need to be considered when thinking about providing benefits for non-traditional workers and “what makes someone an employee” is widely debated. But while many employers around the world are already using available EB management software to administer their benefits for their permanent employees, are they fully exploiting the potential these platforms have to provide a solution that could also work for non-traditional workers?

What does all this mean for multinationals? Here are some things to think about for employers that are preparing for the future.

1. Consider implementing an EB platform. If you’re not already using one, a platform could be the perfect way to provide your people with the flexibility they’re looking for and help increase engagement in your benefits offering. According to our survey only 42% of workers currently manage their benefits via a platform.⁴ Although only a small snapshot, there’s still opportunity for growth in this area.  
   
2. Think about which benefits you’re offering now and in the near future. With multiple generations in the workforce, your people will have a diverse range of wants and needs for their benefits packages depending on their life stage and own personal circumstances. Offering a broad range of benefits – combined with the options to top up or choose others via a platform – could make all the difference.
   
3. Offer benefits to all, not just “employees”. We’ve talked a lot about non-traditional workers and their value to organisations. Providing benefits to these groups might be tricky to navigate but could be worth the investment if it helps to attract and retain the best freelance, contractor and gig worker talent.

Two key themes are emerging when we talk about the future – technology and flexibility. Multinationals are going to need to embrace both in order to cater to the demands of the workers of the future – permanent or otherwise. And the best thing, they work in partnership.

By embracing technology, employers can offer the flexible benefits packages – whether that is protections like pensions and insurances or health, wellness and lifestyle benefits – that their people want and that will help them to retain the best talent in the market. And embracing flexibility requires the technology to deliver.

^{[1] Anon, The Virtual Lab https://thevirtulab.com/what-is-amaras-law/#:~:text=Roy%20Amara%20was%20an%20American,effect%20in%20the%20long%20run.%E2%80%9D (sourced October 2022)}

^{[2] Matt Ridley, The Rational Optimist https://www.rationaloptimist.com/blog/amaras-law/ (sourced October 2022)}

^{[3] M-Brain Analysis, (2020) ‘Benefit Broker Survey’ Sontiq}

^{[4] MAXIS GBN conducted research with circa 1,500 employee workers in October 2022 based across the UK, USA, UAE, France, Spain, South Africa, Mexico and Hong Kong with equal weighting across regions. The research was undertaken online via Google Surveys.}

^{[5] Anon, Willis Towers Watson UK https://www.wtw-healthandbenefits.co.uk/hr-resources/advice-and-top-tips/5key (sourced October 2022)}

^{[6] Anon, Mastercard https://www.mastercard.us/content/dam/public/mastercardcom/na/us/en/documents/mastercard-fueling-the-global-gig-economy-2020.pdf (sourced October 2022)}

^{[7] MAXIS GBN conducted research with 1,205 employee workers in October 2021 based across the UK, USA, UAE, France, Spain, South Africa, Mexico and Indonesia with equal weighting across regions. The research was undertaken online by an independent third party.}

^{[8] Anon, EY https://www.ey.com/en_gl/news/2018/05/world-s-first-blockchain-platform-for-marine-insurance-now-in-co (sourced October 2022)}

^{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.}

^{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, a Private Limited Company with a share capital of €4,650,000, registered with ORIAS under number 16000513, and with its registered office at 313, Terrasses de l’Arche – 92727 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 its 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 MAXIS Insurance Brokerage Services, Inc., with its registered office located at c/o Katten Muchin Rosenman LLP, 50 Rockefeller Plaza, New York, NY, 10020-1605, 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. MAR01120/1122}