Employee Benefits Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The cost of Implementing employee benefits is significantly lower in India than in other developed countries like the US. This is due to a number of factors, including the lower cost of healthcare, the lower cost of life insurance, and the lower salaries in India.In the US, the average annual cost of employer-sponsored health insurance premiums per employee was USD 22,463 for family coverage and USD 7,911 for single coverage whereas in India, the average premium for family coverage was USD 334.54, while the average premium for personal coverage was USD 114.44.

In general, a higher minimum wage can lead to employers reducing or eliminating non-wage compensation, such as health insurance, paid time off, and retirement savings plans. This is because employers have a limited amount of money to spend on employee compensation, and they may choose to focus on wages if the minimum wage increases. For example, minimum wage in the U.S. is USD 7.25 compared to USD 2.15 in India. However, there are no mandatory paid leaves offered by employees in the US whereas employees in India get about 35 paid leaves in a year. 

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, product managers at Axa and Aetna Inc. receive a 5% - 20% higher average salary compared to the salary received by product managers working in companies such as Aon Hewitt, and Mercer. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the employee benefits category over the last two years:

In August 2023, Epassi Group, a provider of employee benefits, has been purchased by TA Associates and Warburg Pincus with the goal of expanding its role as a pan-European leader in digital employee benefits solutions.

In June 2023, With the purchase of Benefits, an employee benefits advisory firm, together with the company's brokerage and consulting operations, Aon announced the development of the firm's Health Solutions capabilities in Chile. The acquisition considerably increases Aon's client base and the services already being offered by the company in Chile.

In March 2023, Empyrean Benefit Solutions, a U.S.-based subsidiary of Securian Financial, bought Enspire, an employee communication and engagement platform, in order to provide American businesses with employee benefit-related administration tools and sympathetic support services.

In July 2022, in order to increase its market share in the United States, Core Benefit Solutions, a provider of employee benefits, compliance, and human resource outsourcing services, was bought by Alera Group, an insurance and wealth management services company.

In May 2022, the launch of Engage, an employee engagement platform, was announced by Willis Towers Watson, a global advisory, broking, and solutions company. Engage had intended to assist organizations in understanding variations among various workforce segments, listening to employees and capturing and responding to their needs, as well as making better personnel decisions and creating more effective HR programs and work environments.

In August 2021, Up Group purchased Leeto in order to improve its offerings by adding a complementary digital service to its current offerings, including a platform that enables employees to access their benefits.