Equity in Employee Benefits

Fundamental to a more equitable approach, is ensuring that benefits offered to employees are both wide-ranging and tailored to address specific health and wellbeing needs that arise due to race, gender, sexual orientation, gender identity, socioeconomics and more.

Companies taking this wider context into account can better connect employee benefits and services to their overarching DEI objectives.

Retaining experienced older talent is an increasing factor in the design of policies, programs and benefits for employees. To stay resilient and competitive, companies must look at ways they can incorporate additional measures for ageing well, such as health screenings and menopause support.

Attractive benefits programs go beyond standard maternity and paternity leave to accommodate diverse family needs both financially and practically, including fertility treatment, support for adoption and surrogacy, carer benefits and flexible working.

According to the Aon Building a Future Ready Workforce Report, while 71% of employers in the EMEA region recognize disability status within their DEI strategy, the benefits and workplace support available to this group is often limited. Focusing on this area could make work more accessible, opening up more opportunities to unlock the full potential of this talent pool.

Figures from the European Parliamentary Research Service found that only 61% of people with disabilities within the European Union are economically active, compared to 82% of persons without disabilities.

According to Aon's most recent Global Wellbeing Survey, 87% of employers already have a wellbeing initiative in place, and as approaches to wellbeing evolve, offering a data-informed range of programs and benefits packages to address a broad range of concerns can continue to make an impact.

Pay equity, especially between genders, remains a primary concern. Whilst regulations vary widely across regions, with the recent directives on Pay Transparency within the EU and US to support a fairer reward system, employers need to be proactive in driving financial equity within the workplace to remain viable in a competitive employment market.

Financial stressors overall can have a major impact on employee resilience. Addressing needs such as financial education, more equitable access to workplace benefits and incentives, and ensuring retirement-savings opportunities are improved for historically disadvantaged groups, are essential for a more holistic approach to employee compensation.

A data-led approach can ensure that employer’s healthcare coverage and leave provision is aligned with medical health trends and can be expanded to meet the areas of greatest need.

While parent-related leave dominates employers’ policies, there are other ways to use time off to support DEI. Caregiver leave, cultural and religious days off, accessing transgender services and sabbaticals (especially for older workers) could all help to build a more inclusive culture. However, according to the Aon Building a Future Ready Workforce Report 2024, these benefits are currently offered by only a minority of employers.

There is an ever-greater necessity for employees to work away from their home countries, which mean benefits must work across multiple regions with varied local regulations.

Similarly, recognizing the health and cost impacts of climate change, there is now greater employee demand for benefits that promote environmental sustainability.