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Putting your people first: Why tailored employee benefits in SMEs matter 

Amid talent shortages, rising healthcare costs, and growing employee expectations, Marsh’s Health on Demand 2025 report reveals that employees at smaller organizations are less likely than those at larger organizations to say their benefits needs are met. 

The gap is more pronounced at organizations with fewer than 50 employees: Only 42% of employees say their benefits meet their needs, compared with 60%–68% at larger organizations.

Perception that comprehensive medical benefits are usually only available to large organizations

Are SME employee benefits meeting industry standards?

SME employees also report that their benefits fall short compared to other organizations in their industry. At the smallest companies, only one third of employees believe their benefits compare well.

Employees who feel their employer cares about their health and well-being

Our study found a marked difference between employee perceptions of how much their employer cares about their health and well-being at larger and smaller sized companies. The smallest companies experience the largest gap, with only half of employees feeling that their health and well-being matter to their employer.

Tailoring benefits to help SMEs attract and retain talent

As SMEs face significant resource constraints, they should consider exploring benefits solutions designed to help them meet the diverse needs of their employees. Offering flexibility and choice in benefits plans can increase employee satisfaction and boost talent retention. When competing with larger organizations for talent, SMEs offering tailored benefits choices can provide a competitive advantage to win the war for talent. 

How can Marsh help SMEs provide inclusive and cost-effective employee benefits? 

Marsh offers employee benefits solutions for businesses with as few as two employees, including:

  1. Fixed-rate or capped-rate-increase contracts for multiple years, regardless of inflation and claims performance.
  2. Access to a comprehensive range of employee benefits (usually available to large organizations) through our global network and partnerships.
  3. Digitised benefits administration for greater convenience. 
  4. Proprietary benchmarking data on benefits and discounts on health and wellness solutions, through our exclusive Benefits Club
In today’s environment of rising expectations, escalating healthcare costs and ongoing talent shortages, SMEs can no longer adopt a one-size-fits-all benefits strategy. In an increasingly competitive talent market, offering tailored and flexible benefits can help SMEs demonstrate care, strengthen loyalty and create a meaningful employee value proposition.
David Branagh, Commercial Segment Leader, Marsh Health and Benefits, Asia

In this war for talent, how competitive are your current benefits to attract and retain key talent? 

Take this simple assessment to find out how competitive your benefits are in under five minutes.
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