Organisations are facing significant roadblocks in enhancing employee benefits due to a lack of robust data, according to a new report on benefits design.
Nearly one-third of proposed changes to benefits packages are rejected because HR professionals cannot present sufficient data to support their recommendations, a report by the London-based Reward & Employee Benefits Association (REBA) found.
Its Benefits Design Research 2025 report demonstrates the importance of data-driven decision-making in workplace wellbeing but also the difficulties many organisations still face in using data effectively.
As employee wellbeing increasingly becomes a priority, the research reveals a vital issue: the lack of actionable data is stalling much-needed changes to benefits programmes. Without reliable data, HR professionals are unable to make a compelling business case for change. In many cases, executives are unconvinced about the return on investment (ROI) of benefits initiatives, particularly when the supporting data is weak or non-existent.
Data is essential not only for demonstrating the effectiveness of existing benefits programmes but also for shaping future strategies. Only a small fraction of companies have integrated data analytics systems capable of providing the insights needed for informed decision-making, the report says. A total of 45% of HR professionals surveyed admitted that they struggle to measure the impact of their benefits programmes, leaving them unable to secure the necessary support to improve or redesign offerings.
To address this challenge, experts say organisations need to invest in comprehensive data tracking tools. These systems can monitor employee engagement, health outcomes and benefit utilisation rates, which in turn will allow HR teams to tailor benefits programmes to the specific needs of the workforce.
Technology and Personalisation Can Drive Engagement
One of the most pressing needs identified in the report is the growing demand for personalised benefits. As the workforce becomes more diverse, employees are increasingly seeking benefits packages that cater to their specific needs, a trend that’s particularly noticeable among younger generations.
The report stresses that technology can play a crucial role in meeting these expectations. Through advanced benefits platforms, employees can choose from a range of offerings that best suit their preferences, whether that’s healthcare benefits, financial wellbeing resources or flexible working options. Such platforms can not only boost engagement but also improve retention, as employees who have more control over their benefits are more likely to use them fully.
Further supporting this, the report found that 68% of employees are more likely to engage with benefits programmes when they’re able to personalise their choices. Personalisation not only increases employee satisfaction but can also lead to more effective benefits utilisation. This represents an opportunity for employers to enhance the value they derive from their benefits programmes.
Effective Communication is Key to Maximising Benefits
The report also emphasises that communication plays a critical role in ensuring employees understand and appreciate the benefits available to them. Research has shown that despite the growing range of benefits offered, the majority of employees are unaware of the full scope of what’s available. The lack of awareness can result in underutilisation of benefits, which ultimately diminishes the overall impact of the programmes.
To overcome this, HR departments are increasingly adopting a proactive communication strategy. It includes regular updates through various channels such as emails, internal newsletters, webinars and face-to-face briefings. The report suggests that the more accessible and transparent the information, the more likely employees are to engage with and utilise their benefits.
Additionally, experts say HR teams should focus on providing educational resources that explain how to maximise the value of benefits. Interactive workshops and informational portals can help ensure that employees not only understand what benefits are available but also how to navigate the complexities of health insurance, retirement savings plans and mental health support programmes.
Aligning Benefits with Organisational Objectives
Another important takeaway from the report is the need for alignment between employee benefits strategies and organisational goals. A growing body of research shows that employee wellbeing is directly linked to organisational performance. Employees who are healthy, engaged and satisfied with their benefits are more likely to contribute to the success of the business.
The report stresses that HR professionals must view benefits programmes not as standalone offerings but as integral components of the broader organisational strategy. For example, if a company is focused on increasing productivity or reducing absenteeism, the benefits on offer should support these goals. Health-related benefits, such as mental health support or access to wellness programmes, can directly impact productivity by reducing stress and improving employee morale.
Despite the clear benefits of data-driven strategies, many organisations are still lagging behind in terms of data maturity. The REBA report reveals that only 36% of organisations have fully integrated data analytics into their HR operations, leaving a significant number of companies at a disadvantage. Without the right tools and processes in place to capture and analyse data, it becomes nearly impossible to tailor benefits programmes to employee needs or demonstrate their effectiveness.