Swiss employers rethink their benefits strategy

According to the Benefits Trends Survey 2025 by WTW, a service provider for advisory, broking and solutions, two thirds of the Swiss companies surveyed (66%) see the shortage of skilled workers as the main driver of their benefits strategy in 2025 - even if this has lost some of its importance compared to 2023 (85 %). Other important influencing factors are the expectation of an improved employee experience (41%), working agreements (38%) and financial pressure on budgets (33%). "In view of a possible economic downturn, many employers are undertaking a strategic realignment. They are focusing on those benefits that create real added value - both for employees and for the company. This means targeted investments, personalization and better support for employees in their decision-making," says Reto Ebnöther, Head of Health & Benefits at WTW Switzerland.

Tighter budgets limit benefits

Financial constraints are limiting the ability to provide comprehensive wellbeing services. Rising pension costs are also putting pressure on employers in Switzerland. As a result, many are finding it difficult to implement their strategy in key areas - particularly in relation to wellbeing programs (33%), retirement benefits (30%) and health (23%). Against this backdrop, many companies are shifting their strategic focus. Only a few are actively expanding their benefits package. Instead, the focus is on increasing the added value of existing benefits and improving financing, employee experience, analysis and administration.

Over the next three years, 54% of employers plan to reallocate or restructure their expenditure. In addition, more than two-thirds (68%) want to expand the choice of benefits on offer. The majority (59%) plan to manage costs in a targeted manner by introducing navigation solutions that support employees in the use of benefits. Similarly, a large proportion (54%) would like to adjust the expenses for various benefits in order to offer more with the respective benefit. Many are also considering cheaper providers for risk benefits (36%) or pension solutions (34%).

Increase the added value of benefits

In order to better meet the needs of their employees in the future, many companies want to prioritize the following topics over the next three years: mental health, increasing the added value of existing benefits, health and pension offerings, ESG-compliant benefits and the working environment. They also plan to make greater use of technology, increase communication, provide targeted incentives (nudges) and introduce navigation solutions to encourage employees in their behavior with regard to benefits and improve the employee experience. The regular performance review of providers - including employee feedback - is also playing an increasingly important role.

"Organizations are under more pressure than ever to develop a future-oriented benefits strategy that is right for them. New and old challenges require innovative approaches. If benefits help to make values and purpose tangible, this is an important first step. However, there is still a long way to go to successfully eliminate the real pressure points of the workforce. However, many companies seem to be moving in the right direction by increasingly focusing on what is really important to their employees," says Reto Ebnöther.

Source: WTW