Global benefits modernization strategies 

Today's benefits challenges differ significantly from those of the past, driven by unprecedented societal changes, including advancements in technology, health, and medicine, as well as sweeping regulatory reforms and sociopolitical upheavals. 

It follows that to thrive in a ‘new normal’ that seems to be anything but, multinational employers must be reflective, adaptive, decisive, and ready to accept different approaches to the ways they manage and care for their global workforce.  This involves paying close attention to who makes up your workforce, what precisely they are asking for and how benefit strategies support broader organizational priorities and values.

In 2025, enhancing the employee value proposition to attract and retain top talent ranked as the second highest priority for HR, with 60% of organizations listing improved competitiveness of Total Reward programs at the top of their agenda.^[1] As the average employee is more informed about their own benefits needs and how their employer can address them than ever before – listening to their voices is not just important – it's imperative.

This is a priority matter for multinational organizations looking to be the employer of choice, retain talent and keep employees engaged. Our Global Benefits modernization strategies 2024 study found that 85% of multinational organizations surveyed plan to develop, or have started to develop, a benefits modernization strategy. Businesses that do not adapt to the changing needs of their workforce and design benefits to bolster their business strategies and corporate values will fall behind. So, what does the global benefits modernization journey look like for global employers? 

Global benefits modernization, simply put, is the practice of updating existing employee benefit provision practices and programs to meet the needs of employees today, and of the workforce needed tomorrow, through a structured, holistic strategy. It’s a human-centric approach based on workforce data and evidenced based practices, which puts the needs of individuals at the center (as opposed to market practice or trends) and allows employers to set a global benefits strategy focusing on what makes talent thrive and perform. 

Modernization practices move away from traditional benchmarking, which can perpetuate design bias and gaps in vendor capabilities, aligning instead with current and future employee needs across an array of aspects. These can include preventative care coverage, mental health, considering the new family patterns and an aging workforce as well as others.  

Setting global minimum standards, is the pathway companies utilize to develop their global modernization strategy. These standards include a comprehensive breakdown of the provisions or benefits an organization wants to provide to their employees globally.  As such, they provide global consistency while also allowing for local adaptation. 

Once the strategy and global minimum standards are set, companies can develop the global business case for funding, planning, and stakeholder and/or corporate support.

Global benefits modernization isn’t just a win for your people; it’s also a win for your organization. In the case of medical benefits, evaluating how you’re offering benefits around the world unlocks new routes to cost efficiency, leading to hidden cost-saving opportunities and new ways to balance or manage health risk. You might also find gaps in coverage that can be addressed through local public systems, ensuring you’re optimizing your benefits investment. 

One of the most important focuses of benefits modernization is on accessibility and affordability of preventative services, rather than depending entirely on costly curative treatment. Considering the global medical trend rate was projected to be in the double digits for 2025,^[2] a forward-thinking approach emphasizes proactivity over reactivity, redistributes the total healthcare risk, and keeps your employees healthy instead of treating them only when they are sick. This way, employees are engaged and more productive, and your organization is in a better position for long-term global benefits budgeting and forecasting.

It’s no secret that the current political climate is a volatile one, prone to polarization and rapid change. The priority of organizations seeking to succeed in uncertain times such as these should be having a structured global benefits modernization strategy tied to company values, guiding principles, evidence-based data, compliance, and governance. A strategy like this provides a solid framework for companies to tackle challenges with structure and preparation, rather than reaction. 

This approach also guards against the dangers of misinformation and disinformation: one of the top five key concerns and risk issues for business leaders,^[3] and a prevalent symptom of our fast-moving, social media-driven age. Basing your benefits programs on verifiable data ensures your employees’ well-being is not subjected to the influence of changeable speculation and misinformation by bad actors.

The employee of the present day needs a comprehensive, intersectional and conscientiously designed benefits program to respond to the complexity of the world in which they live and work. This may include benefits such as leave allowances for prenatal care to ensure access to fertility treatments, mental health support tailored to the unique challenges faced by caregivers, and workplace policies that enhance accessibility for employees with disabilities to name a few. Simply masking issues is no longer sufficient; multinational organizations that tackle root causes will become the preferred employers for the talent they need.

Organizations who lean into making bold innovations to their benefits programs are finding themselves not just responding to the market but influencing it. Businesses who fail to respond to societal changes will find themselves lagging behind; those who embrace the demands of the modern ecosystem and lean into it are empowering themselves to shape the socioeconomic environment and have a measurable impact on health equity, public healthcare and welfare, carrier networks, and more.

In the Global benefits modernization strategies: Insights from global headquarters 2024 report, you’ll find data and trends from a worldwide survey including global benefits stakeholders from 228 multinational organizations across 33 markets. More than this, you’ll see how leading organizations understand the challenges and opportunities for developing a global benefits modernization strategy. 

Hesitation and a wait-and-see approach will leave organizations too uncertain to make bold strides, finding themselves playing keep-up for years to come. To get the best for your employees, to secure your place as a leader in your industry, and to be in a position to influence the market rather than follow it, you need to understand global benefits modernization. In this report, you’ll find everything you need to get informed – and, better still, find out what Mercer can do to guide and inform you as you take the first steps.