Cyber risk and other operational exposures have become regular boardroom topics. Employee benefits is less often treated as a strategic business issue.
The numbers suggest it deserves more attention. Mental health conditions accounted for 12 per cent of serious workers' compensation claims in Australia in 2023–24, a 14.7 per cent increase on the previous year and a 161 per cent increase over the past decade. The median time lost on a mental health claim was close to five times that of other injuries and diseases. [1]
For employers, the implications extend beyond the workers' compensation programme. Absence, retention, recruitment and the support available to employees are all part of the same conversation.
Yet employee benefits are still often reviewed in much the same way they were years ago. Terms are negotiated, budgets are agreed and the programme is renewed. The renewal matters, but it should not be the point at which the conversation starts.
Start with the workforce, not the policy
The workforce has changed, and so have the challenges employers face in attracting and retaining people. Skills shortages remain an issue across technology, engineering, healthcare and professional services, with employers competing for the same talent while employees have different expectations of what a good benefits package looks like.
A graduate engineer may value flexibility and career development, while a working parent may place greater importance on family support. A field technician may have different health and wellbeing needs from someone working in an office, while a senior executive may have different expectations again.
There is no reason to assume that one package will have the same value to all of them. That does not necessarily mean creating a different benefits programme for every employee group. It means understanding where the needs are different and whether the current investment reflects them.
The question should be less about what the business offered last year and more about whether the programme is helping the business attract, retain and support the people it needs.
Benchmark against the talent you are competing for
Benchmarking remains an important part of the process, but a broad market average only tells you so much. The more useful comparison is often with the employers competing for the same people.
That means looking beyond insured benefits and considering health and wellbeing, financial wellbeing, leave and flexibility alongside salary and other elements of the employee proposition. It can also help identify where a business is spending money without necessarily creating much value for employees.
A benefit can be competitive on paper and still have limited impact if employees do not understand it, cannot access it easily or simply do not value it. This is where employee feedback becomes important.
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Look at the data between renewals The annual renewal provides a useful point to step back and assess the programme, but it should not be the only time that happens. Engagement, absence and employee sentiment can be monitored throughout the year, while claims data can provide another view of where pressure may be emerging. Used properly, these measures can help employers spot changes before they become a renewal issue. But data needs context. A dashboard might show that engagement has fallen in one division, but it cannot tell you whether the cause is workload, management, pay or something specific to that team's culture. That still requires judgement and a proper conversation with the business. Three changes to the way benefits are reviewed:
For Australian businesses expanding overseas, the same principle applies. Benefits cannot simply be copied from one market to another. Regulation, healthcare systems and employment conditions vary, so local context matters. |
“We still see businesses going into renewal without a clear view of what their people actually value. They know what they spent last year but not always whether that spend is having the intended impact.” Travis Bailey, Partner, Head of Employee Benefits, SRG Australia
The adviser's role is changing
Negotiating premium is still part of an employee benefits adviser's job, but it is not the whole job.
A good renewal should help an organisation understand how its programme compares with the market, whether it reflects what its people need and where there may be gaps. It should also create a conversation about what has changed since the last renewal.
That means asking what has changed since the last renewal. Has the workforce changed? Has the business entered new markets? Have absence patterns shifted? Are employees using the benefits available to them, and are there parts of the programme that are no longer delivering the value expected?
These questions are more useful than simply asking whether the renewal terms are competitive. They shift the conversation from "What will this programme cost next year?" to "Is this programme doing what the business needs it to do?"
The objective is not necessarily to spend more. It is to make sure the money being spent is supporting the workforce the business is trying to attract and retain. The annual renewal still matters. But it should be the point at which the programme is properly reviewed, rather than simply renewed.
References
[1] Safe Work Australia, “Key Work Health and Safety Statistics Australia 2025,” October 2025. safeworkaustralia.gov.au/media-centre/news/key-work-health-and-safety-statistics-australia-2025-now-available
