Authors: Alex Dunning Ben Warren
Why benefits matter and why they’ve been falling short
At their best, benefits are designed to support employees through major life moments: growing families, financial uncertainty, illness, or mental health challenges. But historically, the delivery of these benefits has been reactive, complex, and disconnected from the real-world needs of the people they’re meant to serve.
Key challenges include:
- Underutilisation of resources, especially in mental health, where stigma and confusion block access
- Overlapping provisions across insurance and support services, leaving employees unsure where to turn
- Poor timing, with support often centered around annual enrolment, rather than everyday moments that matter
Meanwhile, costs continue to rise – particularly for healthcare-related benefits – prompting HR teams to justify spend without a clear way to demonstrate impact.
The shift: From offering benefits to navigating them
The real transformation lies not in adding more benefits, but in helping employees understand and use what’s already there, creating a compelling Employee Value Proposition. That’s where benefits technology comes in.
Modern platforms now go beyond enrollment tools. They serve as active guides, helping employees navigate complex decisions throughout the year - not just during selection windows. Think of it as moving from:
Real-world example: Untangling complexity
Take a common case: an employee dealing with persistent back pain. Without guidance, their instinct may be to submit a costly claim through private medical insurance (PMI). But a smart benefits platform could suggest National Health Service (NHS) physio options first, or flag employer-provided resources like ergonomic assessments or income protection support. The outcome? Faster care, reduced cost, and a more appropriate use of resources, for both the employee and the business.
The AI advantage: A smarter, more personalised experience
Adding AI to the equation unlocks even greater potential, increasing personalisation and recommendations, and driving better benefit utilisation and business ROI as a result. But AI alone isn’t enough - context matters. When tech is designed without human expertise, it risks becoming just another chatbot spitting out generic advice.
Ben Warren, managing director, head of Digital and AI Transformation, Communication Consulting at Gallagher, observes that: “The technology is already available through the streamlining of admin tasks and automation of repetitive actions such as processing claims, compliance checks or supporting communications. However, the business culture and management of change is playing catch up to the technology and so the power lies in combining AI with specialist consulting insight.” This means systems that:
- Deliver recommendations based on real-life employee needs and benefit logic
- Understand the nuance between overlapping policies and support services
- Learn and adapt to employee behaviours and preferences over time
For example, AI can detect when an employee might be approaching burnout and proactively prompt relevant wellbeing tools before a crisis hits. It can also tailor communications to suit neurodiverse employees or those who prefer visuals over text. These are not future hypotheticals, they’re happening today.
Tangible business impact
Smarter benefits navigation doesn’t just improve experience, it drives real results:
