Mental wellness has become a core part of employee well-being programs, with 74% of employers incorporating mental health services. Competitive employee packages are a key factor in attracting top talent, with 75% of employees preferring companies that offer comprehensive benefits such as healthcare, wellness, and flexible options, a new report said.
The report added that OPD programs have expanded from employee-only to include dependents.
Prudent Insurance Brokers (hereinafter referred to as Prudent), recently launched the second edition of its Annual Benefits Scorecard 2024-25.
This report, leveraging data from 3,100 organisations and covering more than 30 lac+ employees based on Prudent’s internal data as of July 15, 2024, across 14 key industry sectors, provides insights into the dynamic landscape of employee benefits in corporate India.
Pavanjit Singh Dhingra, Joint Managing Director, Prudent Insurance Brokers, said, “With nearly a 40% increase in organisations seeking preventive care plans, and a clear shift towards personalising benefits to offer tangible value across generations, this report underscores the importance of aligning health and well-being benefits with the diverse needs of today’s workforce. In a post-pandemic world, this report provides essential insights for businesses to enhance their benefits offerings, ensuring they attract and retain top talent while staying competitive in a dynamic environment.”
Major trends in employee benefits are as follows:
Expansion of OPD Benefits
Companies have rapidly shifted towards Outpatient Department (OPD) benefits and preventive healthcare, with a 30-40% increase in uptake. Sectors like BFSI, Healthcare, Power, and Engineering emphasise preventive screenings, annual checkups, and mental health support. The median sum insured of Rs 10,000 is considered the most preferred coverage, followed by the sum insured of Rs 15,000 in various active OPD programs in the market
Mental Wellness Takes Centre Stage
Mental wellness has become a core part of employee well-being programs, with 74% of employers incorporating mental health services. Companies are expanding outpatient care and counselling services to support both physical and mental well-being, boosting productivity.
Personalisation of Benefits
The trend towards personalised health benefits is accelerating in sectors like E-commerce IT/ITES, and FMCG where companies offer a mix of insurance and non-insurance options. Employers are moving from defined benefit structures to defined cost structures, giving employees greater flexibility in choosing benefits tailored to their needs.
Advances in DE&I
Sectors such as BFSI and IT/ITES, FMCG and E-commerce are promoting Diversity, Equity, and Inclusion (DE&I) through benefits like gender reaffirmation surgeries, fertility treatments, LGBTQ+ inclusivity, and support for Persons with Disabilities (PWD). These programs cater to a diverse, multi-generational workforce, including same-sex partners.
Pet Care Benefits
Demand for pet care benefits is rising, particularly in IT/ITES and E-commerce sectors, catering to younger employees and those with pets.
Talent Retention through Benefits
Competitive employee packages are a key factor in attracting top talent, with 75% of employees preferring companies that offer comprehensive benefits such as healthcare, wellness, and flexible options.
HIGHLIGHTS FOR MAJOR SECTORS
Automotive (90 organisations, 1,14,000 employees)
The sector has made significant strides with maternity and accident insurance benefits, reflecting a positive attitude towards better support for employees.
51% of companies offer a graded sum insured; 77% provide maternity coverage.
Accident and life insurance benefits have seen a slight increase in higher brackets.
– OPD adoption is modest but increasing.
– Significant progress is needed in DE&I benefits and mental health support.
BFSI (215 organisations, 9,75,000 employees)
The sector is making exciting strides by embracing AI and enhancing talent retention through upgraded insurance and preventive care initiatives.
– 66% of employers offer graded sum insurance.
– 94% of organisations provide maternity benefits.
New pregnancy care benefits for both delivery and return-to-work.
– Positive shift towards CTC-linked accident and life insurance benefits.
– Strong focus on DE&I and inclusive workplace initiatives.
E-commerce (55 organisations, 1,27,250 employees)
The industry is setting a new standard by introducing inclusive health benefits and staying ahead of the curve in managing severity, all aimed at attracting and retaining top talent.
– 61% of companies provide flat family floater sum insured.
– New covers include maternity-related complications and menopause.
– Upward shift in medical, accident and life insurance benefits.
– Greater emphasis on mental health coverage and offering personalised benefit cover.
Edtech (75 organisations, 89,000 employees)
Companies are broadening their family-centric benefits, recognising that today’s workforce highly values employers who are proactive in meeting their unique needs.
– 71% of organisations provide flat floater sum insurance.
– OPD programs have expanded from employee-only to include dependents.
– Life insurance benefits have moved from graded coverage to a multiple of CTC.
Engineering, Power, and Renewable Energy (73 organisations, 1,00,000 employees)
There is a renewed focus on enhancing family and accident insurance to better support and protect the workforce.
– 53% provide graded sum insured; an upward shift in middle management coverage.
– OPD benefits are increasing, with a significant jump in the median offering.
– Accident and life insurance benefits are prevalent, with positive shifts in CTC multipliers.
FMCG and Consumer Durables (100 organisations, 1,84,000 employees)
The sector is elevating its approach with flexible benefits and enhanced insurance, placing a strong emphasis on delivering tangible value across generations to meet evolving workforce demands.
– 63% of employers offer a graded sum insured for employers offering flat family floater cover, there is a shift in the median value
– OPD benefits are offered by 7% of organisations.
– The normal delivery coverage limit has increased from Rs 80,000 in 2023 to Rs 90,000 in 2024.
– Emphasis on personalised benefits and DE&I, but the sector still lags behind the market median.
Healthcare (70 organisations, 1,20,000 employees)
Amidst sector growth and a talent shortage, the industry is strengthening its insurance offerings and increasingly prioritising mental wellness, with employers now recognizing its critical role alongside physical health.
– 51% of organisation offer graded cover and there is an upward shift seen in the median sum insured offered for middle management
– 87% of organisations offer maternity benefits.
– OPD benefits are limited, with a stable median sum insured.
– Life insurance benefits have shifted towards CTC multipliers.
Annual Benefits Scorecard 2024-25 covers 14 key sectors, including Automotive, BFSI (Banking and Financial Services), E-commerce, Edtech, Engineering, Power, and Renewable Energy, FMCG and Consumer Durables, Healthcare, IT/ITES, Manufacturing, Pharmaceuticals, Retail, Telecom, and Travel & Hospitality.
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