Are your employee benefits truly rewarding?

Employee benefits are more than just a checkbox on a compensation package. They are a critical tool for attracting top talent, maintaining engagement, and ensuring long-term satisfaction within the workforce. A well-rounded, flexible benefits package is a key differentiator for employers.

Compensation packages are essential for many reasons. This is one of them: they help employers not only attract top talent but also retain and motivate their workforce. A thoughtful and comprehensive benefits package offers more than just financial incentives; it speaks to an employee’s well-being and job satisfaction. 

Why the need to rethink and re-evaluate employee benefits?

There is no "one-size-fits-all" when it comes to employee benefits. That is something employers must recognise. It’s essential that benefits offerings cater to a wide range of needs and life circumstances. Lotus Yon, NCH, emphasised in an interview with Forbes, "There is more diversity than ever before in the workforce, so it’s only appropriate for benefits to also be diversified."

A recent study underlined more than 95 percent of Gulf workers believe that the traditional one-size-fits-all benefits model used by their employers is outdated and needs a redesign to address their evolving needs.

While 96 percent of employers in the UAE recognise the importance of benefits, but they are still not able to cover all the needs of their 60 percent of workforce.

The workers agreed that benefits is a key to job satisfaction, and their employers should improve or enhance the quality and range of benefits offered to meet their expectations and needs better.

"Employee preferences change over time, so regularly reevaluate the benefits package to keep it relevant. What appeals to employees today may not be as important in a few years, so stay attuned to shifts in workforce priorities. By understanding who your employees are and what they want, you can create a benefits package that strikes the right balance between cost and value. Regular data collection and feedback analysis are key to staying aligned with employee needs, while also maintaining budget-consciousness. This thoughtful, dynamic approach ensures that employees feel supported, valued, and engaged with the benefits offered, leading to increased satisfaction and retention," underlined Muhammad Suhail, an Operations & HR leader.

Adding, "Health insurance, retirement savings plans, paid time off (PTO), wellness programs, and even parental leave are among the core offerings that shape a benefits package. These elements contribute to an employee’s sense of security and satisfaction at work."

From the employee’s perspective, these benefits provide much-needed financial and emotional support. Health insurance, for instance, allows workers to access medical care without the heavy burden of out-of-pocket expenses.

Retirement savings plans ensure a more secure future for employees, while PTO policies offer a vital opportunity to rest and recharge. These benefits go beyond the paycheck—they are integral to maintaining a healthy work-life balance.

Moreover, benefits such as mental health support, flexible work arrangements, and professional development opportunities are becoming more sought-after. These offerings contribute directly to higher job satisfaction and employee engagement, enhancing both the workplace culture and productivity.

U.S-based Employee Benefits & Wellbeing Strategist, Chase Buie shared, There is a lot of information on what the different expectations are of each generation regarding benefits. The key is to research the data that is available from creditable resources outside your organisation. Second is to gather data from your workforce and see what differences you are finding within your organisation compared the data from outside the organisation. As you see similarities in the data for each generations you are likely to have the foundation to know what benefits can be cross-generational, what things you may need to add to attract younger talent, and see what things you can get rid of that are no longer relevant.

Diversity and personalisation 

Tailoring benefits packages to meet the needs of different demographic groups is very important. Employees at various life stages—whether they are just starting their careers, managing family responsibilities, or nearing retirement—require benefits that address their specific challenges. 

"There are now 4 generations in the workforce, each with a unique view regarding the value of benefits. Boomers are concerned with security and retirement planning and see greater value in caregiving and retirement benefits. Gen X values work-life balance and gravitates to companies offering flexible scheduling and retirement benefits. Millennials are driven by growth and value training and development, student loan repayment, and fertility benefits. Gen Z expects a more comprehensive approach from their employers, valuing a holistic health plan that addresses mental health, and financial planning assistance," suggested Austin Price, a U.S.-based Employee Health & Benefits Advisor at Marsh McLennan. 

While the most common benefits—health insurance, retirement savings, and PTO—remain critical components of compensation packages, their value can be eroded by loopholes, limitations, and administrative barriers.

Health insurance, for example, is an essential benefit, but many employees find themselves burdened with high deductibles, restrictive provider networks, and out-of-pocket expenses that significantly diminish its effectiveness. Similarly, retirement savings plans, including 401(k)s and pensions, offer long-term security, but lengthy vesting schedules mean that employees may not fully benefit from employer contributions if they leave the company before they’re vested.

Paid time off policies also vary widely from company to company, with some offering unlimited PTO. However, even in these cases, many employees feel pressured to limit their time off due to workplace expectations or understaffing issues. Stock options and bonuses, while attractive, are often tied to performance metrics or have vesting schedules that delay the full financial benefit. Perks like wellness programs, tuition reimbursement, and childcare assistance can be valuable, but employees often encounter accessibility issues and bureaucratic hurdles that can make these programs difficult to use effectively.

Joyce Maroney of Kronos Incorporated, explained in a Forbes article, "Ask your employees what benefits are most important to them. Total compensation and health benefits are always going to be key determinants when people decide to join your organisation. Beyond those, ask your employees what benefits matter most to them via regular surveys or focus groups."

"One thing I’ve discovered from working with some of the biggest startups in LATAM is that flexible work arrangements, remote work, and PTO are now seen as necessities rather than benefits. The best talent will only accept positions under these conditions and expects additional emotional compensation that they find valuable. Offering your employees a one-size-fits-all benefits plan no longer suffices. The future of work is evolving into flexible benefits that your collaborators can choose and use at their own pace," highlighted Carlos Enrique, Founder of flexible benefits platform - Atlas.

"I've seen how flexibility and personalisation in benefits are game changers. It's not just about offering more benefits but providing those that truly add value to each individual. It's key to understand the specific needs of each team and employee to offer a benefits package that matches their expectations and lifestyles." echoed Gianina Rossi, Atlas's co-founder. 

Robin Bahl, CEO of Custom Benefit Consultants underlined, "Balancing cost and the perceived value of benefits is crucial when catering to a multigenerational workforce, as preferences and needs can vary widely across different age groups."

Adding, "For younger employees, benefits like flexible work arrangements, professional development opportunities, and wellness programs may hold significant value, often outweighing higher salaries. In contrast, older workers might prioritise retirement plans, healthcare coverage, and work-life balance benefits. Effective strategies involve conducting surveys or focus groups to understand diverse preferences, offering a flexible benefits package that allows customisation, and regularly reviewing and adjusting offerings to meet evolving needs."

The common loopholes 

Despite the generous benefits often touted by employers, there are common pitfalls that reduce their value. Some companies impose restrictions on health insurance coverage, such as exclusions for specific treatments or high copays that make healthcare less accessible. PTO policies, such as “use-it-or-lose-it” rules, force employees to take time off within a specific time frame or lose it entirely. Retirement plans with extended vesting periods can delay employees’ full ownership of employer contributions, and stock options often tie employees to the company for years before they can fully benefit from them.

These restrictions and loopholes can create a sense of dissatisfaction and frustration among employees, leading them to question the true value of their benefits. To avoid this, employers must strive to offer benefits that are not only generous on paper but also practical and accessible in practice.

Employee expectations around benefits are not static. A major shift is occurring towards more personalised and accessible offerings. On-demand payroll, for instance, allows employees to access their earnings immediately rather than waiting for a traditional pay cycle. Research shows that this option is highly preferred by employees, as it helps them manage day-to-day expenses, avoid late fees, and reduce reliance on payday loans.

AI-driven personalisation is also revolutionising benefits by enabling employers to tailor offerings based on individual employee needs. Benefits can now be adjusted for various life stages, from student loan repayment assistance for younger employees to eldercare support for more established workers. Mental health benefits, such as virtual therapy sessions and digital detox programs, are also becoming central to wellness strategies in response to the increasing recognition of psychological well-being in the workplace.

Sharing two cents, Andreas von Hagen, a Senior Adviser Global Employee Benefits underlined: "Design a communication strategy for your benefits. Because you have to be present in the employee's mind at all times in order to optimise the benefit.

Example: If an employee is sick for the first time and has to see a doctor, he may go to a very expensive but not the best doctor out of ignorance. He is not aware that the employer may offer an appointment service and that the employee will receive better benefits as a result.

The employee will recover more quickly thanks to the better treatment and will therefore be back at work more quickly. Communication is not something, it is everything."

"There are two components (and they don't have to cost you!): flexibility and communication.

Millennials thrive on flexibility, so offer options that allow millennials to choose.  Focus on benefit options that have little to no cost (pet insurance discounts, entertainment discounts, voluntary supplemental benefits, PTO buy-ups, etc.) to give additional flexibility.

Then, communicate.  Host monthly lunch-and-learns to address questions.  Provide a total compensation statement that shows the employer investment in their benefits. Have a dashboard where employees can access all of their benefits.  The more they are reminded of what they are being offered, the more they will appreciate it." shared Raechyl Thieringer, a Claims Specialist. 

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How employees can advocate for better benefits?

Employees also have a role to play in shaping their benefits package. To ensure that the benefits offered truly meet their needs, employees should take the following steps:

1. Ask Questions: Understand the details of your benefits, such as deductibles, co-pays, and vesting schedules.
2. Negotiate: If certain benefits don’t meet your needs, engage with HR or management to discuss alternatives.
3. Make Use of Available Perks: Maximise the value of existing programs, from wellness initiatives to financial assistance options.
4. Seek External Resources: Consider supplementing employer benefits with personal insurance or financial planning tools if necessary.

In essence, employee benefits are evolving, but challenges persist. Health insurance with high deductibles can feel like a burden, while long vesting periods in retirement plans delay real rewards. Unlimited PTO sounds great—until pressure to avoid time off kicks in. Similarly, bonuses and stock options often come with strings attached. On the flip side, on-demand payroll offers financial freedom, and AI-driven benefits bring a personal touch. Mental health support is on the rise, with digital tools leading the way, while flexible schedules and remote work have become essentials. Financial wellness programs like student loan help and real-time pay are gaining traction. The future of benefits lies in making them simple, accessible, and truly valuable