Organisations face mounting pressure to bridge the gap between what they offer and what their people truly need.

“Valued and Valuable: Better Decisions to Unlock the Full Potential of Your People”, a study by Aon, addresses this challenge through a data-driven exploration of how employers can better meet the expectations of a diverse workforce by identifying and closing the disconnect between employee needs and available benefits.

One of the central themes of the study is the need for tailored benefits that reflect the varied life circumstances and challenges of employees. The data indicates a strong correlation between wellbeing and the perceived value of specific benefits.

Employees with negative wellbeing are significantly more likely to appreciate offerings that directly support them through difficult times:

• 46% value savings and insurance plans
• 41% prioritise women’s health support
• 33% identify mobility perks as crucial.

These insights underscore that targeted benefits can substantially boost satisfaction, particularly among those struggling the most.

Income level also plays a pivotal role in benefit preferences. High-income earners tend to value career development and training, while lower-income employees prioritise immediate support mechanisms, such as critical illness coverage, unlimited time off, and mobility benefits. These distinctions illustrate that financial context shapes what employees perceive as valuable, challenging the notion of a uniform total rewards package.

Single parents emerge as an especially vulnerable group. They are more than twice as likely to experience financial hardship compared to non-parents or couples, and are 85% more likely to express extreme dissatisfaction with their current benefits. Their priorities centre on paid time off and work-life balance, highlighting the urgency of responsive, inclusive benefits frameworks that address pressing day-to-day realities.

Lack of awareness about employee benefits

A major revelation in the study is that many employees are unaware of the benefits they actually have. For example, only 38% of employees who consider life and disability insurance important believe they are currently offered those benefits, despite their common inclusion in many rewards packages. This disconnect signals a communication failure that undermines the very purpose of offering such support.

This problem isn’t limited to a few select benefits. When asked to rank what matters most at their current life stage, 20% of employees identified dental insurance, while 13% selected emotional wellbeing support. Yet many do not even know if these are available to them. It’s not just about offering benefits but also about ensuring employees understand and value them.

Employers must rethink communication strategies. Data shows that email remains the preferred channel globally (52%), followed by one-on-one meetings (42%) and internal websites (31%). However, these preferences vary regionally. For example, employees in the Netherlands, India, and France prefer personalised meetings, while those in Brazil and Mexico favour instant communication such as WhatsApp. Tailoring communications based on location and culture is critical to increasing engagement and awareness.

Wellbeing, financial security, and the case for flexibility

The study also shines a spotlight on the intersection of financial insecurity and chronic workplace stress, especially among low-income earners. These employees are 30% more likely to experience frequent stress, often report feeling overworked, and exhibit greater distrust in technology related to health. Moreover, they commonly feel that their employer fails to protect their wellbeing, offer clear benefit information, or provide easy access to support.

However, access to specific benefits can make a notable difference. Employees with life and disability insurance report 10% lower chronic stress, and those with work-life balance programmes show a 20% reduction in stress levels. These findings reinforce the power of strategic benefit design in promoting mental and emotional wellness.

However, having a uniform approach to benefits often fails to capture the diversity of employee needs. Flexibility is key.

The Aon study reinforces a broader conclusion: one-size-fits-all rewards strategies are obsolete.

Modern employees – diverse in age, income, family situation, and career stage – require customisable solutions that empower them to choose what works best for their lives.

The role of financial education in empowering employees

Financial education is another domain where the study identifies a major opportunity. Employees who already feel financially secure are 8% more likely to appreciate financial education resources. But those facing hardship focus on core needs such as medical insurance (68%) and paid time off (59%), often overlooking how financial guidance could ease their burden.

Globally, there’s a troubling gap: 37% of employees expect financial education from employers, but only 11% receive it. Additionally, only 51% of those who value retirement planning and financial wellness have access to such benefits. The data suggests that offering benefits without education undermines their impact. Clear, accessible financial guidance can dramatically improve perceptions of total compensation, particularly for vulnerable groups.

The insights from this study serve as a microcosm of its broader message: understanding employee sentiment is foundational to creating impactful, future-ready total rewards.

Conducted in August 2024, Aon’s Employee Sentiment Survey gathered data from over 9,200 employees across 23 countries. This globally representative dataset provides a compelling backdrop to the findings.

The full report uncovers key global insights: 60% of employees plan to change jobs in the next year, and 72% desire benefit personalisation, yet only 41% currently have the option to personalise their benefits. Notably, 63% would trade existing benefits for more choice, and 42% would even accept lower pay for better benefits. The data-rich insights on adaptive offerings, targeted communication, and financial education feed directly into these strategic imperatives.

The study delivers an evidence-based argument: to unlock employee potential, organisations must close the benefits gap. This means offering flexible, tailored rewards that reflect the real-world circumstances of diverse workers; improving communication to increase awareness and understanding; and integrating financial education as a key pillar of employee support.