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Business Times
3 days ago
- Business
- Business Times
Apac employers rethink employee benefits spend to draw talent, manage costs: survey
[SINGAPORE] Asia-Pacific (Apac) firms are rethinking their employee benefit strategies amid rising costs and stiff competition for talent, according to a survey by Nasdaq-listed global advisory firm WTW. This comes as employers in the region face diverging priorities, said the 2025 Benefits Trends Survey, which gathered insights from nearly 2,000 employers across 20 Apac markets from March to April. On the one hand, employers need to attract talent amid persistent labour shortages and structural gaps in the market, particularly in specialised skills. On the flipside, they face cost pressures that affect their ability to offer employees benefits – which are viewed as tools to attract and retain talent. 'Rising budgetary pressures and benefit costs, particularly around healthcare, are impacting employers' ability to enhance and deliver on their benefits more than ever before,' the survey noted. To reconcile these competing demands, employers are seeking to reap more value from their current investments while managing cost constraints, by rebalancing and reallocating their benefits spending. Conflicting demands: maximising value, reining in costs With rising cost pressures, most firms do not plan to expand their benefits spending or the range of benefits offered in the next three years – as only 20 per cent of respondents said they intended to do so. A NEWSLETTER FOR YOU Friday, 3 pm Thrive Money, career and life hacks to help young adults stay ahead of the curve. Sign Up Sign Up Yet, the vast majority of firms are not looking to cut back on benefits spending either. Even as managing company costs ranked as employers' top benefits priority in 2025, only 2 per cent of respondents plan to reduce benefits spending over the next three years. Rather, the majority of employers are aiming to optimise their existing benefits and to extract greater value from their current benefits spending while they navigate cost constraints. To reconcile the conflicting ambitions, of maximising value while reining in costs, 61 per cent of employers are looking to reallocate or rebalance their benefits spending. This entails carefully considering which benefits employees want and need, as well as assessing which deliver the most value, the survey said. Such a recalibration, which involves adding or enhancing some benefits while reducing or removing others, can be challenging – especially as changes that involve scaling back existing benefits may trigger strong reactions among employees who lose out, it said. Employers should thus carefully consider their communication strategies, which are crucial to managing employee reactions to changes, WTW said. Employers face talent competition, target key 'pressure points' Talent challenges are set to remain a key influence for benefit strategies, as competition for talent ranked as the top concern faced by Apac employers, said WTW. Rising benefits costs and expectations for enhanced experiences also ranked high among the concerns employers faced. Across the region, employers face labour shortages in key skill segments, alongside demographic shifts such as ageing populations and shrinking talent pools, the survey said. 'With talent issues persisting, employers plan to use benefits as a tool to signal their organisational purpose and values as they work to attract and retain talent,' it said. Notably, employers are looking to make benefits more employee-centric, by designing them with a sharper focus on attraction, retention and employee well-being. 'Employers should articulate a clear value proposition through benefits, and support their employees' specific needs (while also) reflecting the organisation's broader values and how they connect emotionally with employees,' WTW said. The survey noted that employers are adopting a more disciplined approach to rebalancing their benefit spend where it matters the most as they work to use benefits to strengthen their employee value proposition. They are investing in employee needs with greater precision and targeting key employee pressure points, from mental health and family benefits to emotional and financial well-being, the survey found. Spotlight on healthcare Health benefits ranked among the top priority areas for benefits, as employers in Apac are projected to face one of the highest medical inflation rates across the globe. To cope with high costs, 51 per cent of employers are looking to enhance the value they get from vendors of healthcare benefits, said WTW. Another 38 per cent plan to adopt targeted programmes to better manage the high-cost conditions, the survey said. Among these, four in five plan to increase the use of targeted programmes to address high-cost conditions such as mental health, women's health, cardiovascular disease and cancer. Notably, the majority of employers view mental health as a top area they wish to focus more on over the next three years, according to the survey. This comes as around one third of employees display signs of anxiety and depression, the survey said, citing data from WTW's 2024 Global Benefits Attitudes Survey. Additionally, more employers are looking to offer comprehensive leave for caregivers, as well as considering putting in place medical benefits that support women's health, WTW noted. Around one quarter of employers plan to or are considering putting in place a menopause policy, up from only 4 per cent who are currently already do so.
Irish Independent
26-06-2025
- Business
- Irish Independent
A third of companies are looking to scale back on work-from-home option, despite its popularity with employees, survey finds
That's according to the 2025 Benefits Trends Survey carried out by WTW, a multinational insurance broker. Orlagh Farrington, head of health and benefits at WTW in Ireland, said the one-third figure was a slight decline on the previous year, adding employers are looking to balance their needs with employee expectations. 'Nearly half of Irish jobseekers say they would turn down a role that doesn't offer hybrid or remote options,' she said. 'This puts employers in a challenging position: while some are eager to bring teams back onsite, they risk losing out on top talent if flexibility is reduced too aggressively.' The survey also found that rising benefit costs were a top issue, with 61pc of employers saying it was influencing benefit strategies. Healthcare benefits was identified as the most prevalent cost, with 41pc saying this was the most challenging to implement. Farrington said Irish employers were 'under increasing pressure to do more with less'. 'Most employers have indicated that rising budget pressures and increasing benefit costs are limiting their ability to enhance or expand their benefits offerings,' she added. "Unlike in previous years, when benefit enhancements were more common, employers are now focused on maintaining current benefit levels in a cost-neutral way.' So far, she had not seen widespread cuts to benefits. WTW's survey included 41 Irish employers, representing over 41,000 employees.
Yahoo
24-06-2025
- Business
- Yahoo
Rising costs re-emerge as companies' top benefits issue
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. With economic uncertainty seemingly entrenched for the time being, companies are looking hard at the increasing cost of employee health benefits. Among 696 U.S. employers that participated in Willis Towers Watson's 2025 Benefits Trends Survey, 90% identified the pressure on costs as a key business issue shaping benefits strategy. That was a leap from 67% of American employers who said the same in WTW's previous global benefits survey in 2023. As recently as 2021, cost was only their sixth-greatest benefits concern. WTW has projected that U.S. employers' costs for medical care will increase by 10.2% this year. Additionally, compared with just 8% of U.S. employers that reallocated or rebalanced their benefits spending over the prior 12 months, 63% of survey respondents — who were polled in March and April — said they planned to do so within the next three years. Competition for talent, always a key issue because benefits programs are designed in large part to attract and retain valued workers, was this year's #2 concern after leading the pack in 2023, with 52% of U.S. employers characterizing it as a key business issue. Next came employees' expectations for an enhanced benefits experience. Employees no longer want a single benefits package, WTW wrote in its survey report. Rather, they want the flexibility to address their personal circumstances and for benefits 'to be as individual as their needs.' 'The old rules of employee benefits are fundamentally changing,' WTW said. 'With rising costs, economic instability and employees demanding more support and personalization, organizations must transform how they think about benefits.' WTW counseled companies to renegotiate contracts with benefits vendors, use provider networks, explore new pricing models, push for transparency and seek partners that deliver measurable outcomes. A notable majority (73%) of U.S. survey participants said they plan to address high costs by enhancing value or switching to better-value vendors across health, retirement and risk benefits. More than a third (37%) are looking to adopt a network of preferred medical providers. Secondly, companies should address the most expensive health conditions 'through targeted programs that prevent avoidable claims and improve health outcomes,' WTW said. Mental health, cardiovascular issues, and cancer should be particular areas of focus. Almost half (44%) of those polled said they plan to tackle high-cost medical conditions, while 66% identified mental health as a top benefits priority. Meanwhile, 42% of U.S. employers said they're asking their benefits teams to enhance their skills in areas such as analytics, data and legislation. Recommended Reading Health care costs expected to jump by 9% in 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Amid cost pressures, US employers are shifting their benefit strategy, WTW survey finds
More companies expanding choice, tackling high cost and reallocating benefit spend NEW YORK, June 10, 2025 (GLOBE NEWSWIRE) -- As U.S. employers grapple with heightened economic uncertainty and greater financial pressures on budgets, steering the right course on benefit strategy is more challenging than ever. This is according to a survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. As a result, companies are turning to smarter spending, sharper focus and using benefits as a strategic tool to drive engagement, retention and purpose. The 2025 Benefits Trends Survey found rising benefit costs to be the top issue (90%) influencing U.S. employers' benefit strategies in 2025, up from 67% in 2023. Other top concerns include competition for talent (52%), expectations for an enhanced employee experience (43%), cost of living (39%) and rising mental health issues (32%). 'After a long period of high benefits inflation and in the face of a possibly weakening economy, employers are taking a step back and looking to focus on what drives real value for employees and the business. That means targeting support and spending on the benefits that matter most, enabling personalization and helping employees make better decisions,' said Jeff Levin-Scherz, Population Health Leader, North America, Health & Benefits. As the cost of medical care continues to show double digit growth in the U.S., employers face greater challenges in delivering their strategy in key areas such as health benefits (44%), wellbeing programs (44%), and leave benefits (36%). To address these concerns, employers are shifting their strategy. Few are expanding their benefit portfolio, choosing to instead focus on extracting value from their current offerings and improve financing, employee experience, analytics and administration. Compared to just 8% in the past year, 63% of employers plan to reallocate or rebalance spend in the next three years. A majority (73%) plan to tackle high costs by enhancing value or switch to better-value vendors across health, retirement and risk benefits. Just under half (44%) plan to tackle high-cost medical conditions and 37% plan to adopt a network of preferred medical providers. Eager to address employee pressure points, companies are also looking to improve the following priority areas over the next three years: maximizing value, mental health, health benefits, financial wellbeing and family support. Many plan to increase their use of communication and use nudges and navigation solutions to influence behaviors and enhance the employee experience. Regularly reviewing vendor performance, including employee feedback, is also a key action employers are taking. 'Organizations are facing more pressure than ever to deliver the right benefits strategy. Finding innovative solutions for old and new challenges and reallocating spend on benefits that deliver true value is a good start. There is still a long way to go to address these pressure points, but employers are headed in the right direction by focusing on what matters most to their employees,' said Levin-Scherz. About the survey The 2025 Benefit Trends Survey was conducted from early March to mid-April. Respondents include 696 U.S. employers, representing a broad range of industries in both the private and public sector. About WTW At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Media contactIleana Feoli: +1 212 309
