Global firms double down on personalization, communication, and governance in benefits strategies
Employees at multinational companies are willing to give up some current benefits for greater choice, according to the Global Benefits Trends Study 2025.
The report found that 65 percent of workers at global firms would sacrifice existing perks in exchange for more personalized options, underscoring the growing demand for flexible benefit design.
The study noted that only 14 percent of multinationals had issued global guidelines to introduce personalization in benefits.
Instead, 43 percent delegated these decisions to local markets, while another 43 percent offered no direction at all.
Leading companies were more than twice as likely to set formal guidelines, often focusing on medical programs, defined contribution plans, risk benefits, and wellbeing.
Cost management remained the dominant priority across all regions, cited by 70 percent of multinationals.
High medical inflation was viewed as the primary driver of rising benefit expenses, even though retirement costs can exceed medical spending by 300 to 400 percent.
In Canada, medical benefits represented just 12 percent of total employer benefit spending, compared with 44 percent in the US.
Despite the attention on healthcare, the report cautioned that companies risk overlooking other cost drivers. Spending on pensions, annual leave, and car allowances often accounts for a larger share of employer budgets.
While many firms concentrated on negotiating with insurers or vendors to contain medical costs, fewer considered longer-term strategies, such as wellbeing initiatives or aligning offerings to what employees value most.
Governance also surfaced as a weak spot.
Nearly half of surveyed companies had a global benefits strategy, but only six percent reported full adherence across markets.
Larger companies with more than 50,000 employees demonstrated stronger compliance, while leading firms were three times more likely to establish governance committees and obtain senior management endorsement.
These practices increased accountability and improved execution of benefit strategies.
The study reported a 50 percent increase in the number of employees who said they understood their benefits well, rising from 18 percent in 2024 to 27 percent in 2025.
This improvement was linked to the growing use of total rewards statements, particularly among leading companies, which were twice as likely as others to use them.
Technology also played a role, with 41 percent of multinationals relying on digital tools to personalize benefits, compared with 60 percent of leading firms.
The report concluded that firms must reassess how they balance value, cost, and governance.
Expanding personalization, broadening cost focus beyond medical inflation, and strengthening oversight structures were identified as critical steps to align benefit strategies with both workforce expectations and long-term financial sustainability.
