Here’s How Corporate India Is Responding to Changing Expectations on Employee Benefits

Mental health has become a core part of employee well-being programs, with 74% of employers offering mental health services. Competitive employee benefits packages are a key factor in attracting top talent, and 75% of employees prefer companies that offer comprehensive benefits, such as healthcare, wellness and flexible options, a new report says.

The report added that OPD programmes have been extended not only to employees but also to their dependents.

Prudent Insurance Brokers (hereinafter referred to as Prudent) recently published the second edition of its Annual Benefit Assessment Report 2024-25.

Using data from 3,100 organisations and covering over 30 lakh employees as of July 15, 2024, based on Prudent’s internal data across 14 major industry sectors, the report provides insights into the dynamic employee benefits landscape in corporate India.

Pavanjit Singh Dhingra, Managing Director, Prudent Insurance Brokers, said, “With a nearly 40% increase in organizations seeking preventive care plans and a clear shift towards personalizing benefits to deliver tangible value across generations, this report underscores the importance of aligning health and wellness benefits with the diverse needs of today’s workforce. In a post-pandemic world, this report provides essential insights for companies to enhance their benefits offerings, ensuring they attract and retain the best talent while remaining competitive in a dynamic environment.”

The key trends in employee benefits include:

Expansion of OPD benefits

Companies have rapidly shifted towards outpatient department (OPD) benefits and preventive healthcare, witnessing a 30-40% increase in take-up. Sectors like BFSI, healthcare, energy and engineering are emphasizing preventive screening, annual check-ups and mental health support. A median sum assured of Rs 10,000 is considered the most preferred cover, followed by a sum assured of Rs 15,000 across various active OPD schemes in the market.

Mental health in the spotlight

Mental health has become a core part of employee well-being programs, with 74% of employers including mental health services. Companies are expanding outpatient care and counseling services to support both physical and mental well-being, increasing productivity.

Personalization of benefits

The trend towards personalized healthcare benefits is accelerating in sectors such as e-commerce IT/ITES and FMCG, where companies are offering a mix of insurance and non-insurance options. Employers are moving from defined benefit structures to defined cost structures, giving employees greater flexibility to choose benefits tailored to their needs.

DE&I Progress

Sectors like BFSI and IT/ITES, FMCG and e-commerce are promoting diversity, equity and inclusion (DE&I) through benefits like gender reassignment surgery, infertility treatment, LGBTQ+ inclusion and support for people with disabilities (PWD). These programmes target a diverse, multi-generational workforce, including same-sex partners.

Benefits of pet care

Demand for pet care services is growing, especially in the IT/ITES and e-commerce sectors, as they target younger workers and pet owners.

Retaining talent through benefits

Competitive employee benefits are a key factor in attracting top talent. 75% of employees prefer companies that offer comprehensive benefits, such as healthcare, wellness, and flexible options.

KEY INFORMATION FOR MAIN SECTORS

Automotive (90 organizations, 114,000 employees)

The sector has made significant progress on maternity and accident benefits, reflecting a positive attitude towards better support for employees.

51% of companies offer insurance with a fixed sum insured; 77% provide maternity insurance.

In the higher brackets, life and accident insurance benefits increased slightly.

– OPD adoption is modest but growing.

– Significant progress is needed on DE&I and mental health support services.

BFSI (215 organizations, 975,000 employees)

The sector is making significant progress by implementing artificial intelligence and increasing talent retention through improved insurance and preventive care initiatives.

– 66% of employers offer insurance with varied insurance amounts.

– 94% of organizations provide maternity benefits.

New pregnancy care benefits covering both delivery and return to work.

– A positive shift towards CTC-linked life and accident insurance benefits.

– Strong focus on diversity and integration, and initiatives for an inclusive workplace.

E-commerce (55 organizations, 1 27 250 employees)

The industry is setting new standards by introducing comprehensive healthcare benefits and staying ahead of trends in managing the severity of the situation – all in order to attract and retain the most talented employees.

– 61% of companies offer a fixed amount of family insurance.

– The new insurance covers complications related to childbirth and menopause.

– Increase in medical, accident and life insurance benefits.

– Greater emphasis on mental health care and offering personalised services.

Edtech (75 organizations, 89,000 employees)

Companies are expanding family-focused benefits, recognizing that today’s workers value employers who actively strive to meet their unique needs.

– 71% of organizations offer fixed-amount insurance for variable risks.

– OPD programmes have been extended not only to employees but also to their dependents.

– Life insurance benefits have changed from a graduated range to a multiple of the CTC.

Engineering, Power and Renewable Energy (73 organizations, 1,00,000 employees)

There is a renewed focus on improving family and accident insurance to better support and protect workers.

– 53% offer graduated insurance; upward shift in insurance at the middle management level.

– OPD benefits are on the rise and the average offer has increased significantly.

– Life and accident insurance benefits dominate, with CTC multipliers undergoing positive changes.

FMCG and consumer durables (100 organizations, 184,000 employees)

The sector is elevating its approach with flexible benefits and enhanced insurance, with a strong focus on delivering tangible value across generations to meet the changing needs of the workforce.

– 63% of employers offer graduated insurance sum for employers offering permanent family insurance, there is a change in the median value

– 7% of organizations offer OPD benefits.

– The standard delivery coverage limit has increased from Rs 80,000 in 2023 to Rs 90,000 in 2024.

– There is a focus on personalized benefits and DE&I, but the sector still lags behind the market median.

Healthcare (70 organizations, 120,000 employees)

As the sector grows and staff shortages arise, the industry is strengthening its insurance offerings and increasingly prioritising mental wellbeing, with employers now recognising its crucial role alongside physical health.

– 51% of organizations offer graduated insurance, and the median insurance amount offered to middle management has shifted upwards

– 87% of organisations offer maternity benefits.

– OPD benefits are limited, while the median insured amount is stable.

– Life insurance benefits have been shifted towards CTC multipliers.

The Annual Benefits Table 2024-25 covers 14 key sectors including Automotive, BFSI (Banking and Financial Services), E-Commerce, Education Technology, Engineering, Power and Renewable Energy, FMCG and Consumer Durables, Healthcare, IT/ITES, Manufacturing, Pharmaceuticals, Retail, Telecom, and Travel and Hospitality.