Aon Study Highlights Need for Personalized Employee Benefits
Aon's Insightful Study on Employee Benefits
A recent global survey conducted by Aon plc, a prominent professional services firm, sheds light on the ongoing struggle of multinational companies to provide personalized and inclusive employee benefits. The study reveals that only a mere 14 percent of these companies have established global guidelines to support such personalization, despite a significant demand from their workforce.
Understanding the Demand for Personalization
The findings of the 2025 Global Benefits Trends Study underscore a critical disconnect between employee expectations and company offerings. While 65 percent of employees are willing to trade their current benefits for more personalized choices, the overwhelming majority of multinationals lack the frameworks needed to deliver these options effectively.
Challenges in Meeting Expectations
The study shows that while cost management remains a top priority for 70 percent of multinationals, the focus on delivering genuine employee value is now a rising agenda item. This shift offers a new challenge for benefits leaders as they strive to balance rising employee expectations for flexibility with the necessity of managing costs. Notably, 77 percent of companies plan to negotiate with current benefit vendors to regain control over expenses and 67 percent intend to seek new proposals from benefits suppliers.
The Importance of Consumer-Grade Experience
As echoed by Michael Pedel, Aon’s head of global benefits, employees are increasingly looking for a consumer-grade experience from their benefits. This means providing meaningful choices that align with their personal needs. Companies are making strides in communicating these efforts, yet the ongoing challenge of cost and complexity remains a crucial factor in successfully transitioning towards more personalized offerings.
Expansive Definitions of Benefits
Aon’s research highlights a trend among leading companies to expand their definitions of employee value by including benefits that are inclusive and supportive of diverse workforce needs. Nearly two-thirds of top-performing organizations are planning to enhance their offerings in areas such as family support (54 percent), initiatives for aging employees (39 percent), gender-focused benefits (39 percent), and support for lower-income staff (39 percent).
Strategizing Personalization in the Workplace
Despite the growing demand for personalized benefits, many organizations face operational barriers to scaling these offerings. A significant finding is that while a large portion of companies report having a global benefits strategy, only 25 percent say their governance structure effectively supports their goals. Companies that excel, on the other hand, are more likely to have formal governance teams, centralized decision-making, and solid endorsement from top management.
Leveraging Technology for Better Solutions
Technological advancements, including AI, provide immense opportunities for companies to deliver personalized experiences efficiently. Interestingly, leading companies are more than twice as likely to utilize technology in personalizing benefits. However, current adoption rates are low, with only one in six benefits teams employing AI for design or delivery. Anticipated growth in this area, however, is promising.
Looking Ahead: The Future of Employee Benefits
This year’s findings reinforce that with shifting expectations, organizations must adapt quickly. There is a clear call for firms to embrace personalization, invest in inclusive benefits, and harness data and analytics effectively. With a proactive approach, businesses can shape the future of work while delivering substantial value to their employees.
Frequently Asked Questions
What percentage of multinational companies have personalization guidelines?
Only 14 percent of multinationals have global guidelines supporting personalization according to Aon's study.
What are the main challenges in providing personalized benefits?
Key challenges include cost management and the lack of effective governance structures to implement personalized benefits successfully.
How has employee perception of benefits changed?
Employees increasingly seek a consumer-grade experience, desiring meaningful choice and alignment with personal needs.
What sectors show the most potential for expanding benefits?
Areas such as support for families, aging, gender, and assistance for lower-income levels show significant growth potential for benefits expansion.
What role does technology play in personalizing benefits?
Technology, especially AI, offers vast potential for improving the personalization of benefits, though adoption remains limited at present.
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