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Better Benefits for All – why the next stage of HR tech transformation is about simplification and centralisation

Discover how simplified, centralised BenTech transforms employee benefits delivery. Explore personalisation, wellbeing, and HR digital transformation.

Benefits are one of the clearest signals that an employer can send that they care about the wellbeing of their employees. Not only do they help an organisation remain competitive with respect to hiring, but they can have a demonstrable impact on productivity and therefore offer an edge commercially.

Delivering support that is tailored to the individual is a complex undertaking, particularly for those responsible for the needs of individuals across countries, populations and different stages of life. Indeed, a considerable proportion of employers’ HR budgets are set aside for this very purpose.

However, when we asked 400 senior professionals – 70% of whom are in executive positions – in a wide range of industries around the world, we were told that the challenge they often face is not whether their benefits package is competitive, but whether employees can find, understand and use what is available.

Marsh Global Benefits Technology Trends Survey

Benefits Technology (“BenTech”) describes the technology and infrastructure employers use to manage, administer and deliver employee benefits. It brings together benefits data, and administrative processes within an integrated digital platform, giving employees a simpler, more personalized way to understand, access and engage with their benefits.

BenTech also enables employers to automate administration, integrate benefits with wider HR and payroll systems, and use data and analytics to understand cost and utilisation. Increasingly, it involves applying AI and personalisation to improve employee experience, engagement and decision-making.

Almost all the respondents in our survey use BenTech to administer benefits. There is also a strong consensus among senior leaders that BenTech has an impact on their ability to respond to change, and as such, on average, nearly half (47%) of their HR budgets are going towards technology this year.

Some of the barriers to investment in BenTech have also decreased year on year. 19% of respondents do not see any barriers to investing, compared to 13% in 2025, while we also see reductions in the number of respondents citing a lack of team capacity or having too many HR systems already in place as barriers to progress.

As with last year’s results, we find that the primary uses of BenTech among senior leaders in 2025 are to track benefits utilisation (59%), improve the digital experience with benefits platforms (56%), and track benefits choices (55%). Looking ahead to 2026, leaders also intend to use the technology to improve employee wellbeing – namely in better understanding employees’ mental and physical health needs (40%), identifying high-risk groups for targeted interventions (37%), and further personalising benefit recommendations and communications (37%).

We also see this trend in how employers are leveraging data. While in 2025 the focus was squarely on tracking and forecasting, many are shifting their focus to personalisation and wellbeing in the next 12 months. Senior leaders are optimistic about what they can achieve with these insights, with more than 87% seeing them as a positive influence on employee performance, wellness and productivity.

Overcoming the remaining barriers to entry

Clearly, this shift is positive. However, the challenge cited by leaders remains the fragmented nature of existing systems that HR leaders are tasked with operating.

Only 21% of respondents in our survey reported to being able to obtain new benefits data within 1-5 days, with a third (33%) needing more than 11 days to obtain benefits data. On top of this, 31% of respondents still gather benefits data manually.

When data is difficult to access it makes it harder to leverage insights, and system incompatibility makes it difficult to implement upgrades. Indeed, 39% cite concerns about integration with existing systems as a barrier to BenTech investment.

The solution to the problem? Centralisation

Centralising benefits technology creates a single, connected ecosystem for benefits, data, providers and administration. This reduces complexity and improves operational efficiency for employers, while giving employees a simpler and more consistent way to access and engage with their benefits.

Centralisation also gives employers greater visibility into cost, utilisation and employee needs, enabling better decision-making and providing the data foundation for more personalised, AI-enabled benefits experiences.

Currently, only 13% of leaders report to having realised the benefits of centralisation, with 57% planning to centralise functions in the next 12 months. While 81% are likely to consolidate benefits technology and brokerage or consultancy with a single adviser.

We believe the next stage of benefits transformation is to make the ecosystem work better as a whole. By simplifying and centralising benefits technology, employers can reduce administrative complexity, connect previously fragmented data and create a more intuitive experience for employees. In turn, that creates the foundation for more meaningful personalisation, more targeted interventions and greater use of AI to support better decision-making.

The opportunity for employers is to move towards benefits that are easier to access, easier to understand and more tailored to the individual. Ultimately, the value of BenTech will be measured by how effectively it helps organisations turn investment in benefits into better experiences and better outcomes for their people.

Find out more about how Marsh helps to deliver personalised benefits at scale.