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Employers are actively responding to changing workforce expectations and the latest technological advances to modernize employee benefits delivery. Three-quarters of employers view HR technology as the biggest driver of changing benefits priorities in their organizations, according to The Future of Benefits Technology, a new report from Mercer Marsh Benefits.
A key part of this change is the move toward centralized benefits platforms that streamline administration, improve data integration and provide a unified experience for employees. Personalization is another critical focus, with employers tailoring benefits offerings to diverse employee needs across generations, life stages and individual preferences. The integration of AI is becoming increasingly prevalent, enabling enhanced analytics, personalized recommendations and proactive support, such as early detection of burnout.
“Despite these promising developments, employers face several key challenges in adopting and optimizing benefits technology,” the report said. “Integration complexity remains a significant hurdle as organizations often struggle to connect disparate systems and data sources. Data privacy and security concerns also weigh heavily, requiring careful management to comply with regulatory requirements and maintain employee trust.”
Budget constraints and shifting organizational priorities can limit investment in new technology platforms. In addition, employee engagement with benefits technology is uneven, with some employees facing access
