Transforming Employee Benefits for a Diverse Workforce

In response to the rapid transformation of India's workforce, organizations are revolutionizing their approach to employee benefits. The aim is to attract and retain top talent by addressing a wide range of needs through innovative solutions.

Flexible Health Insurance and Wellness Programs

There has been a significant 300% increase in companies offering flexible health insurance plans over the past five years. These plans now include coverage for parents and siblings, alongside wellness programs and financial planning tools, as highlighted in the 'The Future of Benefits 2024' report by Mercer Marsh Benefits.

Customizable Benefits and Sector-Specific Trends

Employees are increasingly seeking autonomy in selecting their benefits, leading to a rise in customizable insurance and wellness programs. The BFSI sector leads in providing the highest sum insured, with the IT/ITES/ecom sector notably offering ESCP (employee, spouse, children, parents/in laws) as a default inclusion for 73% of its workforce.

Employer Sponsorship for Parental Insurance

Employer sponsorship for parental insurance has seen a remarkable increase from 35% in 2019 to 53% in 2024. This trend underscores the importance of such benefits in employee retention and well-being, especially in a country like India where the absence of a social security system heightens the need for comprehensive employee benefit programs.

Prawal Kalita, MD, Mercer Marsh Benefits India Leader, emphasizes the evolution of employee benefits, stating, "Employee benefits are no longer just about healthcare coverage. They are evolving into holistic well-being solutions."