Enhancing workforce benefits : Future of Benefits 2024 and beyond
To showcase how Indian organisations can address the future needs of the diverse employees groups, Mercer Marsh Benefits (MMB) has published a report on- Future of Benefits 2024 and beyond.?? As India’s workforce evolves, organizations are reinventing benefits to meet diverse employee needs. Beyond statutory provisions, companies are increasingly introducing innovative solutions like flexible health insurance plans that have seen an upsurge of almost 300% in the last 5 years, inclusive coverage options focusing on parents, cover, siblings cover and wellness programs, and financial planning tools. These forward-thinking approaches not only enhance employee well-being but also help attract and retain top talent in a competitive landscape.? In recent years, India's evolving workforce landscape has driven the government to introduce several progressive initiatives aimed at enhancing employee welfare and social security.
The report highlights the transformative changes in India's employee benefits landscape over the last 5 years.
* Rise in parental insurance sponsorship - Employer sponsorship for parental insurance has increased from 35% in 2019 to 53% in 2024, making it a key benefit for employee retention and well-being
* Shift to cashless hospitalization - Organizations and insurers are promoting cashless hospitalization, leading to higher payout ratios and a reduction in average hospital stay from 5.9 to 5.3 days
* Growing focus on family-building benefits - Employers are expanding coverage to include fertility treatments, surrogacy, and adoption benefits, reflecting changing workforce needs
* Flexible benefits on the rise - Employees are demanding greater autonomy in choosing benefits, leading to increased adoption of customizable insurance and wellness programs
* Cost optimization through preventive care - Organizations are prioritizing preventive healthcare measures, including early diagnosis, screenings, and wellness programs, to reduce long-term medical expenses
Commenting on the report, Prawal Kalita, Managing Director, Mercer Marsh Benefits India Leader said, "Employee benefits in India are no longer just about healthcare coverage; they are evolving into holistic well-being solutions. There is a significant shift towards flexible, inclusive, and future-ready benefits. The adoption of flexible health insurance has surged by 300% in the last five years. Employers are recognizing the value of offering comprehensive support—from parental insurance to mental health programs—to meet the diverse needs of their workforce. As businesses compete for talent, benefits strategies must go beyond statutory provisions and embrace innovation, ensuring they remain relevant, cost-effective, and impactful for employees across all life stages."
Above views are of the author and not of the website kindly read disclaimer
