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We are continuing to see the consolidation of group insurers (GIs) in Australia through mergers and acquisitions, although major GIs continue to compete to retain business. In parallel, rates are being impacted due to high levels of claims activity – many clients coming out of 2-3 year rate guarantee periods are facing rate increases between 40 – 50%. The disability market has been particularly impacted, with mental health now a key driver of claims activity, and GIs brace for the long-term impacts of COVID-19.
Competition for talent in Australia has never been fiercer. A recent study by PwC reported almost 40% of Australian employees surveyed are considering leaving their current employer in the next 12 months, with Gen Z and Senior Executives most likely to leave (and often the most costly to replace).
Closed borders and reduced migration to Australia during the pandemic have led to further talent shortages in the local market across vast industries. Due to the reduced labour market, proactive organisations with structured and holistic employee benefits propositions are more likely to attract and retain the best talent. Organisations need to consider benefit plans that reflect their employees’ overall health and wellbeing – one that holistically targets their mental, physical, and financial needs, and is supported by a technology platform that drives strong engagement, understanding, and usage by staff. These elements are critical for employees to value their benefits and enjoy a seamless experience.
Technology continues to be a key industry for employee benefits (EB) in Australia. The recently formed Tech Council of Australia has ambitions to see one million people employed in technology jobs by 2025. It is, therefore, no surprise that EB remains a top priority for technology companies looking to attract and retain the best talent in an extremely competitive market.
A recent PwC survey revealed wellbeing is the second most important factor for employees in their decision to join or leave an employer. In addition, 85% of workers reported that their wellbeing has deteriorated during the pandemic, with 1 in 2 workers experiencing mental health challenges over this time. In response, we are seeing an increasing number of companies invest in their employees’ mental health through targeted support, building such offerings as health and resilience workshops, manager training, support for working parents, and mindfulness workshops into their benefits programs. Find out more in this essential benefits briefing.
Technology will continue to play a key role in the EB space, with more organisations adopting benefits platforms to deliver their programs. Honan has partnered with Zest to provide a market-leading platform that allows organisations to showcase their overall benefits in a unique and customised way for a seamless employee experience. Please contact us with questions at any time, or to book a demonstration.
