NEW DELHI: With India’s workforce undergoing rapid transformation, organisations are re-imagining employee benefits to meet diverse needs and secure top talent. Companies are increasingly adopting innovative solutions, including flexible health insurance plans, mental health support, and diversity, equity, and inclusion (DEI) initiatives to create a more supportive workplace.
Over past five years, there has been a 300% surge in companies offering flexible health insurance plans, with focus on parents, siblings cover and wellness programmes and financial planning tools, ‘The Future of Benefits 2024’ report by Mercer Marsh Benefits said.
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Employees are demanding greater autonomy in choosing benefits, leading to increased adoption of customisable insurance and wellness programs. The BFSI sector provides the highest sum insured, followed by pharma and IT/ITES/ecom. Further, the IT/ITES/ ecom sector stands out by offering ESCP (employee, spouse, children, parents/in laws) at 73% as a default inclusion, followed by pharma at 64% and manufacturing at 54%, it adds.
The report reflects analysis across 14 industries, over 10,000 policies and over 600 benefit evaluations. Employer sponsorship for parental insurance rose from 35% in 2019 to 53% in 2024, making it a key benefit for employee retention and well-being. In India, absence of social security system coupled with differential compensation, drives need to cover parents under employee benefit programmes.
Prawal Kalita, MD, Mercer Marsh Benefits India Leader said, “Employee benefits are no longer just about healthcare coverage. They are evolving into holistic well-being solutions.”
