Aon plc (NYSE: AON), a leading global professional services firm, has published “The Impact of Rising Inflation on Employee Benefits,” to help employers understand how inflation affects talent, pay, pensions and employee benefits. The report also outlines how employers can balance their health and wellbeing commitments with rising costs as well as how employers can support employees facing the rise in the cost of living.
Carl Redondo, global benefits consulting leader, Aon, said:
“Employee benefit programmes are not immune to the repercussions of this high inflation environment, and the situation is complex and fluid. Responses from organisations so far have tended to be reactive and vary by industry, geography and company-specific factors. However, there are proactive steps employers can take to mitigate impacts and make better decisions.
“Each organisation will face different challenges but our guidance to employers is anchored around three main areas. The first is to get the basics right; for instance, optimising benefit spend, making sure fees and expenses are in line with market rates and eliminating duplicate coverage. Secondly, employers need to define their strategic position around talent, reward and benefits strategy – and pursue it. Thirdly, wellbeing needs to be at the heart of a strategy, so that it – and preventative healthcare – are prioritised. Financial wellbeing is also a critical part of this and there are a number of relatively small and cost-efficient benefits that can make a big difference to employees.”
Aon has also published guidance on how companies can support employees during the volatile economic period: “Increasing Inflation: Key Considerations for Employers Looking to Provide Better Support.”
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