Only 14 per cent of multinational companies have established global guidelines to support personalized employee benefits, even as 65 per cent of their workers would trade existing benefits for more choice, according to a new study from professional services firm Aon.
The 2025 Global Benefits Trends Study, which surveyed more than 500 benefits professionals across 45 countries, reveals a growing disconnect between employee expectations and corporate capabilities. While companies face mounting pressure to offer flexible, inclusive benefits programs, most lack the governance structures and technology needed to deliver them effectively.
Cost management remains the top priority for 70 per cent of multinational companies, with medical inflation identified as the primary expense driver. However, the study shows that providing employee value has become equally important, now ranking among the top three objectives for benefits leaders.
“Employees increasingly expect a consumer-grade experience when it comes to their benefits – one that offers meaningful choice, creates innovative solutions and aligns with their individual needs,” said Michael Pedel, head of global benefits at Aon. “Companies are moving in that direction and communicating their progress, but must also manage the realities of cost and complexity.”
Push for inclusive benefits grows
The demand for personalization extends beyond simple choice to include benefits that address diverse workforce needs. Nearly two-thirds of companies with mature governance structures plan to expand offerings focused on families, aging populations, gender-specific needs, and lower-income employees.
To fund these expanded programs, 25 per cent of survey participants said they would reduce spending on benefits that employees value less. The shift reflects broader changes in workplace expectations, with 37 per cent of companies considering initiatives that integrate health and work-life balance.
Governance gaps hinder progress
While nearly half of companies report having a global benefits strategy, only 25 per cent of benefits leaders say their governance structure allows them to meet their objectives. The study identifies a significant performance gap between leading companies and the rest.
Organizations with formal governance committees and centralized data systems are three times more likely to achieve cost savings and stable benefits delivery. These top-performing companies are also 67 per cent more likely to have Global Benefits Centers of Excellence.
Technology adoption lags behind need
Artificial intelligence and other technologies could help companies balance personalization with cost control, but adoption remains limited. Only one in six benefits teams currently use AI to support benefits design or delivery, though this figure is expected to nearly triple by 2027.
Leading companies are more than twice as likely to use technology for personalized employee experiences, but many organizations face barriers from legacy systems and governance challenges.
The study found that 77 per cent of survey respondents plan to renegotiate costs with existing benefits vendors, while 67 per cent plan to issue requests for proposals to new vendors.
“This year’s study confirms what many global benefits leaders already feel, expectations are rising, but the tools and governance structures to meet them haven’t kept pace,” said Pedel. “To deliver real value, organizations must think beyond cost containment.”
The study was conducted between January 27 and February 28, 2025, across 16 industries. Aon operates in more than 120 countries and trades on the New York Stock Exchange under the symbol AON.
