Employers urged to ‘reset’ total rewards amid evolving needs

Augustus Vickery, director analyst in the Gartner HR practice, said the rising attention to medical benefits, long-term incentives, and flexible financial benefits comes as workforce needs shift and become “more fragmented.”

“In today’s uncertain business environment, organisations must reset their TR strategies to attract and retain critical talent while optimising costs,” Vickery said.

What strategies can HR implement?

The findings come in the wake of surging healthcare costs over the past years, with 2027 not being an exception. In the United States, Aon forecasts that healthcare costs for US employers will further increase by 9.5%, charging toward double-digit increases.

According to Gartner, chief human resources officers should ensure that their programmes are in line with what workers want, such as protection from unexpected medical costs.

“GLP-1 access and fitness subsidies should be positioned as preventive health offerings in benefit communications to improve participation and connected health outcomes, such as healthcare cost reduction and improved employee productivity,” the report read.