Ageing workforce poses challenge to employers' benefits offering, says global report
Employers believe that the challenge posed by an ageing workforce is the most significant generational hurdle in the workplace today, according to a recent report.
The ageing workforce and succession planning (56 per cent) topped the list of employer concerns by a wide margin.
“In general, the challenges appear to involve more of the older generations as even an aspect of benefit provision such as healthcare becomes more expensive with age, not to mention an employer’s responsibility toward those nearing retirement in terms of financial health and guidance around retirement options,” says MBWL International in the report.
Two experts previously discussed the effectiveness of retirement matching contributions in this Canadian HR Reporter article.
What factors do employers consider in designing benefits?
When it comes to benefits planning, cost remains the top consideration for employers. MBWL International ’s survey of 355 companies across 100 countries found that 66 per cent of employers cited cost as the primary factor when designing or reviewing their benefits offerings.
"Last year, there was a sense that the global economic environment might stabilise, but any thoughts of that happening any time soon have dissipated," says MBWL International in the 2025 Global Benefits Forecast report.
Despite cost still being the most important factor, it has declined in importance from 81 per cent last year.
"According to this year’s results, organisations are placing more emphasis on understanding how their benefits compare with those of their competitors," the report states.
Specifically, 47 per cent of employers now consider peer group or market benchmarking in benefits design.
"Staying informed about market trends can help organisations make informed decisions that align with industry standards while managing costs."
Other top considerations include talent attraction and retention, employee appreciation, and employee choice.
Young Canadian workers aged 18 to 29 prioritise workplace benefits and policies over higher wages when choosing employment, according to a previous report.
How are companies balancing offering competitive benefits with maintaining cost efficiency?
In an effort to contain benefits costs, employers are focusing on introducing or enhancing wellbeing programmes (38 per cent) and preventive care offerings (30 per cent), according to MBWL International .
"Our findings indicate that organisations believe these two strategies are important in driving down the rising costs of employee benefits," the report states.
"While we would caution organisations against expecting instant results, we agree that in the longer term, such initiatives should benefit organisations through lower claims and insurance premiums, and a reduction in long-term sickness absences."
According to Randstad, employers can create a compensation package that supports higher employee retention by combining competitive wages with meaningful benefits.
"Higher salaries without corresponding benefits that improve the life of your employees may not be enough to keep your workers from changing jobs. On the other hand, benefits without competitive salaries won't be enough either. It's only when competitive wages and meaningful benefits go hand-in-hand that your company can obtain the improved retention rate it desires."
Randstad adds: "Developing a competitive employee compensation package cannot be an afterthought, nor should it be done in haste. Instead, you should create a well-thought-out compensation strategy that aligns with your company’s vision and business strategy. Having a strategy in place can help your company remain competitive today and for years to come."
