New global research from employee benefits and reward platform Benifex uncovers a ‘Values Void’ in current benefits provisions. While more than three-quarters (79%) of employers have increased investment in benefits over the past year, this has failed to translate into real-world value for 62% of workers.

A further disconnect was found between employers and employee perceptions of impact: 90% of HR leaders believe their offering makes a meaningful difference to people’s lives – yet only 69% of employees agree.

Drawing on more than 3,000 interviews with employers and employees globally, Benifex’s study suggests that rising investment, though well-intentioned, often misses the mark. Many employees remain confused about what they’re entitled to, and unsure how to access the support available to them.

Key findings: Skyrocketing expectations, unclear value

The Values Void is exacerbated by rising employee expectations, with workers now seeing benefits as a core part of the employee experience.

• 85% of employees say benefits need to be simpler to understand, access and change.
• 81% believe their employers should offer more cost-of-living support.
• 81% also want their benefits package to adapt as their personal circumstances change.
• 71% say the benefits their employer offers matter more now than two years ago.

Personalisation is becoming a critical differentiator – with employees expecting packages tailored to their life stage, priorities, and financial realities.

Key findings: Employers turn to technology to meet demands

In response, organisations look to technology – including AI – to support their benefits strategy.

• 46% of employers now use benefits platforms (compared with only 14% 12 months ago).
• 96% believe AI will play a significant role in meeting employee expectations.
• 57% state that AI is revolutionising how they work.

The study finds that organisations using benefits platform can better track investment versus impact, align benefits with company values and keep pace with worker demands.

‘Make value your benefits north star’

To help close the perception gap and create a better benefits experience, Benifex recommends making ‘value your benefits north star’. This means viewing every decision and initiative relating to benefits through the lens of employee relevancy and impact. 

Personalisation is key to this approach. As Karen O’Neill, Benifex’s Chief People Officer, highlights: “There’s a clear link between perceived value and personalization. A benefit that is completely irrelevant to 98% of the workforce might be life-changing for a few employees. Think of fertility treatment: our perceptions of value are intertwined with our life stage and personal circumstances.”

“Value is so often about delivering the right benefit at the right time with relevant communication and accessible information,” She adds.

AI as the enabler of value-first benefits

As Benifex’s data shows, AI will play a key role in delivering this valued-first approach. Not only will it help personalise benefits, it will also provide smart search features that help employees find content most relevant to their needs.

“AI is the critical tool in closing the expectation gap and helping employees to understand the value of their benefits,” says Matt Macri-Waller, Founder & CEO, Benifex. “It will provide employees with the essential information they need, cutting through complexity and assisting them to make informed decisions and take action,” he adds.

To explore the findings further, access the full research report from Benifex here.

Benifex is the proud Wellbeing Partner of Culture Pioneers – a campaign to both support organisations driving impactful culture change, and commend those who are leading forward and challenging the status quo at work.