Employee benefits have become the heartbeat of compensation and employer choice. Companies understand they need to expand their benefit offerings to be competitive in the ongoing War for Talent—and they’ve invested heavily to make that happen. However, investments in employee benefits are not moving the needle.
The traditional benefits model is broken. Utilization is low, costs are high and employers are often forced to choose between delivering a better experience and achieving greater efficiency. Benefits managers are frustrated, and senior leadership is questioning the increasingly larger expenditure.
Even more concerning, employees are feeling unsupported—despite employers’ extensive efforts to provide the benefits, tools and resources required by today’s diverse workforce. Just over half (54%) of workers feel they have control over their wellbeing and nearly 60% regretted a healthcare decision in the last year, according to the 2024 Alight International Workforce and Wellbeing Mindset Report. Less than half (44%) rate their overall wellbeing highly and nearly a third (30%) say they’ve lost trust in their employer’s wellbeing efforts.
Not surprisingly, workers are feeling disengaged, with 30% admitting they give no more than the required minimum and 29% saying they no longer desire to produce top quality work. Half of all employees don’t expect to be with their current employer next year, either because they are actively looking for a new job or would seriously consider an opportunity if presented. Of those who would consider a new job with another company if one came up, 41% say better benefits would cause them to change their mind about leaving and stay with their current company.
Turning the tide
Clearly, employers must find a way to connect with employees in a manner that truly helps them better understand and navigate their benefits for optimum health, wealth and wellbeing. The way forward requires employers to break constraints by shifting to a model that delivers a better experience and greater efficiency by leveraging digital tools and targeted support to guide employees to the right resources, encourage proactive health management and ultimately enable healthier, more financially secure lives.
When workers are enrolled in the employer-sponsored health plan and have access to personalized support and navigation tools, the results can be amazing:
- Employee experience is higher. More than half (55%) of these fully supported employees have a great to awesome experience, compared to 43% of the others.
- Overall wellbeing increases. The percentage of fully supported employees who rate their overall wellbeing highly is almost 50% higher than the general population.
- Workers feel more confidence in their benefits decisions. Three-quarters of fully supported employees feel confident about their most recent medical health plan election, compared to 60% of the general population.
Technology plays a critical role in this revolutionary new benefits model. However, it is merely the enabler. The guidance, empathy and high-touch support delivered by highly trained consultants remains a crucial component and must be prioritized, even as advances in technology bring increasingly greater levels of innovation.
Introducing Alight Benefits Advantage™
At Alight, we have a game changing viewpoint on the future of benefits. We believe that benefits should be a sustainable differentiator, not a burden. We’re committed to helping organizations optimize costs while delivering a world-class benefits experience. The Alight Benefits Advantage™ helps organizations achieve their goals, whether that's improving retention, increasing productivity or driving growth.
Our solution is built on three core pillars:
- Unified Benefits Ecosystem: We help organizations streamline benefits administration, reducing costs and improving efficiency. By connecting the full spectrum of benefits, from pre-hire to retire and beyond, we enable organizations to unlock engagement and behavior change.
- Unmatched Data and Expertise: Our team of experts provides actionable insights and guidance, helping organizations make informed decisions and drive business outcomes. With 10x more U.S. employee benefits data than any other company, we offer unparalleled intelligence and expertise.
- Optimized Cost and Experience: We deliver personalized benefits experiences that meet the unique needs of each employee, driving engagement and satisfaction. By optimizing cost and experience, we help organizations achieve their goals, whether that's improving retention, increasing productivity or driving growth.
A new day is dawning for employee benefits, one that reigns in benefits sprawl and closes the benefits impact gap by delivering a singular, personalized experience for every employee. From hire to retire and beyond, Alight helps the world’s best companies gain a benefits advantage, while building a healthy and financially secure workforce. We are deeply committed to helping transform benefits into a strategic asset, driving peak performance and positive impact on the bottom line.
