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Transforming benefits through technology

The employee benefits landscape is transforming, with nearly half of all HR budget now being invested in technology.

29/04/2025 · 5 minute read

How data insights are optimising benefits spend to boost employee engagement, wellbeing and loyalty

The employee benefits landscape is transforming, with nearly half of all HR budget now being invested in technology.[1]

Employee benefits platforms that allow employers to centralise and automate benefits and improve the employee experience are a particular focus for investment. Overall, two thirds of employers intend to invest in this technology before the end of 2026.[2]

Key priorities are to reduce the time taken to administer benefits, free up HR resource for more strategic initiatives, control costs and boost engagement with benefits. A particular focus is to drive up use of preventative wellbeing benefits to reduce soaring medical claims.

With four fifths of employees who have access to employee benefits technology saying their employers’ benefits offerings make them less likely to want to move elsewhere,[3] these platforms have a vital role to play when it comes to attracting and retaining skills for the future.

Critical to success is remembering that technology is an enabler, not the solution itself, and using the data insights generated allow employers to optimise their benefits spend in the following ways.

Reduce wasted benefits spend

With more than thirty percent of payroll going to employee benefits,[4] this expenditure continues to be under increasing scrutiny. Which benefits are delivering a return on their investment and what measures are in place to assess this?

Which employees are selecting which benefits and, more importantly, which benefits are being underutilised when compared to benchmarking data? Is this due to a lack of awareness? Or are the offerings not valued or not relevant? By delivering analytics based on different workforce demographics, employee benefits platforms can help you understand your benefits utilisation.

Boost engagement with benefits

Without proper curation, information about employee benefits can easily become buried in emails or the intranet. As a result, only two thirds (65%) of employees know where to find information about their benefits when needed and only one in two say the communications they receive about their benefits are engaging.[5]

Conversely, when employees access all their benefits via a digital front door, they become more engaged and more likely to understand what’s on offer. This is only further enhanced by the opportunities digital technology provides to run automated communications campaigns, tailored to different individuals or at critical decision points.

Overall, eight out of ten employees with access to benefits technology say their benefits meet their needs, compared to just one in two of those without. 80% also said they were thriving in their role, compared to 54% of those without benefits technology.[6] This highlights the importance of benefits engagement for overall employee engagement.

Improve wellbeing outcomes

Soaring medical inflation and challenges accessing healthcare across many countries have changed employee behavior. Employees are now increasingly using health benefits, such as online GPs and private medical insurance, as a first, rather than last resort.

While it is encouraging that employees are getting the support they need, employers must also take this opportunity to use employee benefits software to see which services are spiking and signpost employees towards more preventative wellbeing services.

For example, instead of starting a costly PMI claim for mental health counselling, are employees aware of the pre-paid counselling available through their Employee Assistance Programme (EAP) or cash plan? If musculoskeletal (MSK) claims are soaring, can you signpost them to physiotherapy helplines or movement competitions to prevent problems?

As well as controlling costs, promoting preventative wellbeing services can also make employees feel more valued. 82% of those who have employee benefits software say their employer cares about their health and wellbeing, compared to just 56% of those without.[7]

Personalise the benefits experience

Benefits technology can not only help personalise the employee benefits offering, but also the employee benefits experience by making interactions more engaging and relevant.

This requires going beyond viewing benefits as a set of features for employees to choose between, to viewing the entire benefits user experience as an opportunity to create impactful touchpoints. For example, by using engaging effects and language instead of corporate jargon. Or by providing relevant content to help employees understand their options.

By integrating employee benefits platforms, such as Darwin, with digital gateways, such as Benefits You App, employers can use push notifications to alert employees to relevant benefits and company announcements. 

As advancements in artificial intelligence (AI) continue, further opportunities will arise to connect employees with relevant benefits, address questions and facilitate decision making. Critical to success is putting the foundation in place first, by ensuring benefits data is both centralised and automated.

Make benefits equitable

Pressure is increasing to ensure employee benefits are equitable and not driving up pay gaps. Forthcoming European Union (EU) pay disparity legislation, for example, will require employers to calculate the total amount being spent on each employee, as well as giving employees the right to see how their data and benefits package compares.

This will require employers to produce total reward statements that quantify how much employees are being paid, including the value of non-cash benefits ranging from private medical insurance and paid transport to childcare and mobile phones.

The time taken to do this manually will put meaningful strain on HR administration. An employee benefits platform can not only automate this reporting but also allow the value of similar benefits from different providers across different countries to be compared - so that any benefit pay gaps can be benchmarked.

Drive culture change to attract talent

With more people working from home and across disparate geographies, one in two employers now intend to create global consistency in how employees understand, access and use their benefits. Three quarters of employers also say aligning benefits to company values, purpose and culture is now a key priority in the next several years.[8]

Employee benefits software makes it easier for employers to reinforce their commitment to certain values. For example, by launching new ‘green benefits’ to demonstrate their commitment to environmental goals. Or running health programmes, tailored to different generations, to highlight their commitment to wellbeing.

As competition intensifies to attract and retain key talent for the future, employee benefits software is set to play a valuable role in strengthening the Employee Value Proposition (EVP) to address skills shortages.

[1] Benefits Technology 2024, Mercer Marsh Benefits, 2024

[2] Benefits Technology 2024, Mercer Marsh Benefits, 2024

[3] Health on Demand 2023, Marsh, 2023

[4] Bureau of Labour Statistics, US Department of Labour, 2025

[5] Internal source (Health on Demand 2025, due to be published in May)

[6] Health on Demand 2023, Marsh, 2023

[7] Health on Demand 2023, Marsh, 2023

[8] Global Talent Trends Report, TBC, Mercer

Speak with a Mercer Marsh Benefits representative

MMB can help you understand your data insights to refine your employee benefits strategy. To connect with us or to learn more about Darwin and Benefits You specifically, please fill out the form below.

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Our people

Marcus Slee

Marcus Slee

Digital leader for Europe, Mercer Marsh Benefits

  • United Kingdom

Iain Clark

Iain Clack

Commercial director for Darwin, Mercer Marsh Benefits

  • United Kingdom