Mumbai: The survey revealed that a majority of Indian employers are reconsidering their employee benefits strategy due to the talent war and rising costs. According to the survey by global advisory, broking, and solutions company WTW, 65% of the employers interviewed ranked competition for talent as the top factor influencing their benefit strategy. Rising costs, flexible work arrangements, and a focus on inclusion and diversity (I&D) were also identified as significant influences on their employee benefits strategy for the current year. The survey, conducted between March and April 2023, received responses from 5,233 employers across 95 markets globally, representing 22.9 million employees.
The Indian employers also expressed concerns about persistently high inflation (43% of respondents) and a weak business environment impacting their benefits budget (40% of respondents). The survey further highlighted the misalignment between what employers offer and what employees value in their benefits programs. Employers in India consider risk and insurance benefits, health benefits, and career training and development as the most important in their portfolios. However, employees prioritize health benefits, retirement plans or long-term finances, financial wellbeing or short-term finances, and flexible work arrangements.
WTW India Head of Health and Benefits, Vinod VK, stated that economic factors, a tough labor market, and tight budgets are compelling Indian employers to rethink their benefits strategy. He emphasized the importance of identifying benefits that appeal to each cohort and developing a comprehensive Diversity, Equity, and Inclusion (DEI) policy to address unique needs.
The survey provides valuable insights for Indian employers, allowing them to adapt their benefits strategy to attract and retain talented employees while managing costs.
