Mercer Marsh Benefits

Leveraging benefits to support employees in uncertain times

Consider the evolving needs of your workforce and learn impactful steps that your organisation can take during these challenging economic times.

In an increasingly unstable world, the compounding effect of multiple crises can become overwhelming for both organisations and employees. Alongside geopolitical conflicts, trade wars, record-breaking temperatures, extreme weather events and the spread of misinformation, employees are grappling with the changing world of work and increasing financial pressures². However, with adversity comes opportunity. Now is the time for organisations to adapt and thrive. A modern, strategic approach to employee benefits can be a powerful tool that supports your people and future-proofs your organisation. This article will consider the evolving needs of your workforce and share impactful steps that your organisation can take during these challenging economic times.

The changing landscape

Employee expectations changed dramatically during the Covid-19 pandemic and the pivot to working from home, which lead to the need for benefits to be accessible anywhere, anytime. Traditional onsite benefits were no longer effective. The pandemic is now several years behind us and, while many organisations have returned employees to the office, the rate of change hasn’t slowed. Gen-z has burst onto the scene and they’re not shy about their needs and wants. Meanwhile, older workers are fearful that they’re on the brink of being replaced by Artificial Intelligence and caregivers are concerned about being able to access affordable care². The increasing cost of living is leaving employees vulnerable, particularly during personal health events. Government support can’t keep up with increasing costs, leaving your employees with unmet needs.

The impact on organisations

The impacts of these challenges are far-reaching. While there’s a direct cost attached to modernising employee benefits programs, there are also hidden costs attached to doing nothing. Here are some of the ways organisations are paying the price:

Talent attraction and retention: Employees with fewer benefits are less connected and committed to their current employer. According to the latest Mercer Marsh Benefits Health on Demand report, employees who receive a greater number of benefits from their employer are more likely to report that they are thriving in their current organisation, have a strong sense of belonging and are confident they can afford the care that they need. In contrast, employees are feeling commoditised. Globally, 39% of employees believe they are more replaceable and less valued than just four years ago².
Increased absenteeism: We know that employees in Australia are delaying seeking care, largely due to financial constraints 32%) or trouble securing an appointment (24%)2. Employees who delay seeking timely care may face more severe health issues. This can lead to longer absences from work and higher claims costs for relevant illnesses. This can disrupt team dynamics and productivity, as well as impacting premiums in some cases.
Decreased employee morale: A workforce that feels unsupported may experience lower morale and engagement, impacting overall organisational culture. This links back to the first point, impacting talent attraction and retention.

The benefits of better benefits

When it comes to employee benefits, it’s important to remember that each workforce is a collection of individuals. They have different wants and needs, different problems that keep them awake at night. For benefits to truly benefit, they need to resonate with each individual. This is only possible when a broad range of benefits is made available. By deliberately adapting your benefits strategy to better meet your workforce needs, you can establish a culture of care that supports your workforce to thrive both at work and at home.

In Mercer’s 2024 Global Talent Trends research, when asked how their employer can improve their compensation, employees first and foremost want more types of rewards and the opportunity to personalise their package. Within this research, 46% of employees said they would be willing to forgo a 10% pay increase in exchange for additional well-being benefits3. Imagine you have a bonus $200 per employee. You could give everyone a $200 annual pay rise. Would they appreciate it? Probably not. Alternatively, you could give all employees access to unlimited telehealth appointments, prescription delivery, a comprehensive counselling service and access to a marketplace with a curated selection of discounted health and wellbeing products. And you’d have change from your $200. Modern benefits bundles like this one solve genuine problems for your employees and show that that their employer is there to support them.

Employees who believe their employer is invested in their health are more likely to feel supported during emergencies and are generally more satisfied with their benefits2. Moreover, employees who receive a comprehensive suite of employer-sponsored benefits are significantly more likely to thrive in their roles2. This thriving state is not just about job satisfaction; it encompasses overall health, wealth, and career progression.

Effective strategies to boost your benefits

In some regions like Asia and North America, benefits packages tend to be comprehensive and are considered a compelling part of the Employee Value Proposition. As globally dispersed workforces become more common, employers in the pacific need to catch up.

Below are four simple examples of how organisations in the Pacific can modernise their benefits programs without over-investing. Implementing any of these options, or a combination of them, will help your organisation to compete in the war for talent and better support your workforce during these challenging times.

Prioritise communication

Benefits are meaningless if employees don’t know that they exist. Which is a surprisingly common problem. In fact, employees who say that the comms they receive from their employer are engaging are 57 percentage points more likely to say that their employer cares about their health and wellbeing than those who don’t find the comms they receive engaging².

Therefore, the first step to better benefits is to communicate what you have in an engaging and meaningful way. Start by mapping out all of your benefits, consolidating benefits information in one place, creating a calendar of benefits communications and considering signposting to better connect related benefits.

Establish a digital front door

Once employees know which benefits are available, ease of access is critical. The simplest way to do this is a digital front door, like the Benefits You App that Mercer Marsh Benefits has developed. This is a single app that consolidates your wellbeing calendar of events (or creates one for you if you don’t have one), benefits explanations and links to all of your existing digital benefits via single-sign-on, so employees don’t need to keep track of multiple apps and passwords.

As well as making access easier for employees, this approach provides employers with a wealth of data that can be used to continuously improve your benefits program. You can onboard suitable digital benefits over time, without having to reinvent the wheel each time you launch a new partnership.

Meet unmet needs

The majority of employees say they have delayed seeking healthcare, mostly due to cost². These delays in seeking necessary care may lead to significant issues, both for employees and employers. Which creates an opportunity for employers in the pacific to play a role that is common in other regions. The time is ripe for employers to play a greater role in bridging the healthcare gap.

Some sectors do this well by providing subsidised or discounted health insurance. With advances in virtual care, there’s now more that all employers can do. One cost-effective solution is funding employee access to unlimited telehealth and prescription delivery. This makes it easier for employees to access the care that they need quickly, and therefore to start recovering sooner. The group-buying dynamic makes it cost-effective, most employers are surprised by how little this costs. Telehealth services can be delivered independently, or can be bundled with Employee Assistance Programs and discounted Health Insurance via the Benefits You App.

Re-consider who pays

One of the most cost-effective strategies of all is to find alternative funding sources for your benefits program. While it’s important that employers invest in the health and wellbeing of their employees, there are opportunities to stretch your investment further.

Insurer funding. Speak to your broker about any insurer funding available that can be used to mitigate health risk among your employees. You may find insurers are willing to fund or co-fund specific parts of your program.
Leverage buying power. Organisations like Mercer Marsh Benefits have significant global buying power, which we can use to negotiate rates for our clients. Talk to us about existing partnerships with preferred rates.
Employee discounts. When funding services isn’t an option, consider negotiating discounts for your employees. These can apply to anything from insurances to gym memberships, childcare to commuter credits. The marketplace in the Benefits You App is a great place to consolidate your discounts.

How Mercer Marsh Benefits can help you

Wherever you are on your wellbeing and benefits evolution, Mercer Marsh Benefits can help you. Here are some of the ways that we can support:

Strategy and roadmap design. Before you can modernise your benefits offering, you need to define your desired workforce and understand their needs. We can facilitate workshops to achieve a shared understanding among your leaders and co-design your strategic plan.
Analytics and benchmarking. Drive informed decisions using a combination of tools to assess your current offerings and benchmark against other organisations.
Program design and implementation. We can convert your strategy into action via program design, provider selection, digital tools and communication plans.
Implement the Benefits You App, a digital front door that consolidates all of your digital benefits and communications.
Preferred partnerships. Leverage our carefully curated network of providers to achieve efficiencies and ensure quality.

References:

¹ Mercer Marsh Benefits, People Risk Report 2024.

² Mercer Marsh Benefits, Health on Demand Report 2025

³Mercer, Global Talent Trends 2025

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This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.

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