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About the Benefits Trends Survey Switzerland
The report focuses on the following core strategic areas of benefits strategy:
- The benefits portfolio
- Financing
- Talent experience
- Administration and operations
- Analytics, insights and reporting
The examination of both current trends and the anticipated future direction of benefits strategies offers valuable insights, signposting the direction of HR and corporate decision-making as businesses strive to adopt a best practice approach, while attracting and retaining top talent.
Benefits strategy
A spotlight on success
Establishing a successful, future-proof benefits strategy calls for balancing evolving employee needs with effective engagement, developments in the benefits marketplace, corporate and cultural objectives, benchmark data, pay scale structures, administrative requirements, budgets and cost management.
This is no easy task – but faced with such a complex undertaking, how are Swiss companies coping?
Businesses have certainly recognised a need to raise their game. The survey found that only 4% regard themselves as ‘highly effective’ in all areas of benefits strategy.
A failure in using digital tools to drive engagement emerged as a notable area of concern – cited as being effectively employed by just 8% of respondents. Only three in ten employers (31%), meanwhile, effectively differentiate their benefits from their competitors.
Furthermore just 33% have tailored their benefits portfolio to meet their workforce needs. This despite almost over half (56%) claiming they understand their requirements.
Considering these revelations, it should come as little surprise that only a quarter (25%) of businesses would strongly recommend their company as a place to work, based on their benefits package.
Priority objectives – new directions
The biggest area of focus for companies over the past three years has been their administration, closely followed by their financing – cited by 40% and 38% respectively.
However, we are now anticipating a shifting trend. While financing is set to remain a priority, the benefits portfolio topped the agenda for the coming three years with 58% of businesses planning to sharpen the focus, closely followed by talent experience centred on effective benefits engagement and delivery. Indeed, the importance of this should not be underestimated in the bid to attract and retain talent.
We can also expect to see a renewed emphasis on other key ingredients to a modern benefits programme – effective administration and analytics (a focus for 56% and 44% of businesses respectively).
The multi-generational challenge
For the first time ever, today’s modern workplace may see up to five generations working side-by-side – from the silent generation through to their youngest, Gen Z colleagues – and each brings with it a different set of expectations, risks and requirements.
While this divergent demographic has the potential to bring far-reaching skills and experiences to the table, managing the differing wants and needs of such a multi-generational workforce was deemed the number one challenge facing not only Swiss employers but also employers across Western Europe and the UK.
This recognition, among 67% of survey respondents, should be welcomed, opening the door to establishing strategies that will address this emerging issue. Hot on the heels came the perennial challenge of rising benefits costs, a key area of concern for 56% over the next three years.
The benefits portfolio
Wider provision, choice and inclusivity
A compendium of socioeconomic and workplace forces continues to shape employee expectations and the evolution of the health and benefits landscape. The impact on employer provision is evident in the survey findings.
Almost three-quarters of businesses (71%) plan to enhance work policies and 62% plan to incorporate wellbeing into their overall benefits strategies. Almost half (48%) are looking to enhance their core benefits while 44% also aim to improve flexibility and choice.
employee wellbeing initiatives have been widely acknowledged – from increases in productivity and staff retention to reductions in sickness absence rates.
Financial and social wellbeing, it appears, will become the principle emerging areas of focus, for 21% of businesses. Stress and resilience management programmes meanwhile top the list of the specific initiatives planned to tackle mental health issues, set to be introduced by 31% of survey respondents.
Interestingly, the organisations with the most effective benefit strategies already in place were found to be the ones most likely to further enhance both their core and broader benefits programmes.
Benefits financing
Costs under the microscope
Spiralling healthcare costs globally and an ageing population mean the business bottom line is rarely far from any employee benefits discussion. According to Willis Towers Watson’s Global Medical Trends Report 2019, the global medical insurance cost increases are projected to hit 7.9% this year. Given the healthcare landscape in Switzerland, these insurance costs do not directly affect employers. However, increasing absenteeism and the related costs are a significant challenge for Swiss employers.
Rising benefits costs took number one spot on the key challenges leader board back in 20171 and the management of programme operating costs was again deemed the top priority – cited by 57% of employers. However maximising return on investment with (62%) is the top priority when it comes to financing benefits programmes for Swiss employers.
Talent experience
Raising the bar in delivery and communication
Maximising the Talent Value Proposition (TVP) and the ROI on employee benefits programmes calls for effective processes for delivery and communication.
Indeed, almost three quarters (74%) of businesses are looking to enhance the communication of benefits to employees.
In the wake of developments in benefits technologies, which have created opportunities to improve the employee experience and the administration of benefit plans, 62% are now set to implement or enhance employee self-service, while 59% will prioritise their focus on online portals or apps.
In addition, as the consumerisation of benefits gains traction, nearly a third (30%) intend to create a shopping experience for members when they sign up for benefits, although this is less than the EMEA (45%) and the UK (55%).
Administration and operations
In the throes of the third industrial revolution and a brave new world of connectivity, a third of employers (33%) are considering integrating all benefits information with HR data, while 31% are moving to cloud-based solutions for online benefits.
The challenges of handling ‘big data’ however, extend beyond streamlining processes. The General Data Protection Regulation (GDPR) came into force last year to harmonise data privacy laws and to help ensure the protection of personal data.
Analytics, insights and reporting
When it came to the strategic approach behind the design of benefits programmes, budgeting and planning (67%) and cost & risk analytics (62%) were found to be key drivers, but competitor benchmarking and market insights were considered the most important factors (73%).
As a measure of business outcomes, the popularity of a value-on-investment (VOI) approach, that extends beyond financial ROI, is on the rise. Two in five businesses (40%) have earmarked the measure as an evaluation tool over the next three years.
VOI may include metrics ranging from engagement and workforce retention rates to resilience and productivity – all offering a potentially important gauge of programme success.
If you want to understand how your employee benefits priorities and challenges compare to other industries and geographies or would like a benefits strategy assessment, we are looking forward to your inquiry.
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| Title | File Type | File Size |
|---|---|---|
| Executive Summary Switzerland 2019 | 1.4 MB |
