At the recent 2026 UK People Solutions Forum, held at London’s Ham Yard Hotel, benefits professionals spoke about the key challenges shaping their priorities for the year ahead. A packed day of talks, panels, and in-depth conversations revealed a persistent set of pressures – including rising rates of ill health, shifting employee expectations, and mounting financial constraints – that are forcing organisations to rethink how they design and deliver their benefits programmes.
Below, we’ve compiled a snapshot of the questions on everybody’s mind – along with the answers that we believe could help.
1. How can we support employees with mental health and wellbeing challenges, and create resilience throughout our workforce?
We’re currently seeing various factors contributing to a mental health crisis in the workplace – from excessive workloads to inadequate managerial support. These factors are driving record employee uptake of mental health services. Younger cohorts are the biggest users, with financial pressure and job insecurity among their key concerns. As a result, it’s little surprise those listening to a talk by Jenna Mullett, Senior Manager, Proposition Development at Unum, highlighted mental health as the greatest workforce health challenge facing their organisation.
Employers face an ethical imperative to support their employees. But there is also a strong business case for tackling poor mental wellbeing. Employees suffering from conditions including depression or anxiety are more likely to commit errors or make poor decisions. They also exhibit higher rates of absenteeism and presenteeism (low productivity due to low mood, burnout, or poor mental wellbeing). Many of our attendees spoke openly about the ripple effects of these behaviours, which can carry operational, financial, and reputational risks.
To instil resilience throughout their workforce, employers must create the conditions for employees to adapt to stress and overcome adversity. Cultural shifts – including promoting work-life balance, ensuring (particularly junior) staff receive adequate supervision, and training leaders to foster a supportive environment – can help to mitigate potential mental health triggers. Further interventions, such as wellness programmes and stress management schemes, can prevent difficulties from escalating when they occur.
2. Cancer and chronic illness claims are rising – how can we ensure employees receive the care they need?
Cancer and chronic conditions were another much-discussed topic among benefits leaders. During an insightful talk with Sarah Taylor, Director of Corporate Proposition at Healix Health, attendees heard how rising cancer rates – particularly among younger people – are driving higher volumes of healthcare claims.
In tandem, lifestyle-related health concerns are becoming more common, with half of over-50s suffering from metabolic issues (a group of risk factors that increase the risk of cardiovascular disease, stroke, and type 2 diabetes). As a result, employers are increasingly likely to find themselves supporting employees managing multiple long-term health conditions.
The complexity of coverage around these topics is a persistent challenge. Employers and employees alike are often surprised to learn that certain chronic illnesses fall outside the parameters of their healthcare scheme, while treatments for certain cancer treatments may be capped or restricted. Many attendees voiced confusion around exactly what they are expected to provide, and how to navigate the overlap between their existing healthcare scheme and NHS services.
Amid this uncertainty, prevention becomes the new cure. Promoting healthier lifestyle choices among staff, from controlling alcohol intake to adopting a balanced diet, can be an effective way to mitigate future claims. Such behavioural changes don’t happen overnight, however – and the benefits may not be reaped for years down the line. Even then, quantifying a tangible ROI can prove difficult. Ultimately, employers must remember that prevention is a long-term investment, not a short-term cost.
3. We’re facing a data overload – how can we create usable and actionable insights for our benefits strategy (and can AI help)?
“Good data is actionable data”. That was the takeaway from Katherine Ozorio, Senior People Solutions Consultant at Lockton, during a panel discussion entitled ‘Data: How to find the good, spot the bad, and avoid the ugly’. Many employers now hold vast quantities of data, yet struggle to separate insight from noise. While more data is often considered beneficial, too much can become paralysing – obscuring patterns in how employees use their benefits, and delaying necessary actions.
Rather than collecting data blindly, employers should examine internal data sources, and consider which are likely to add value to their decision making. This data must be accurate and reliable – and so underpinned by robust methods of collection. As an example, while employee feedback can offer a useful insight into employees’ thinking, it may exhibit bias towards those who are more highly engaged with their scheme.
The complexity of data also leads to challenges of interpretation. For instance, where employers have multiple cohorts within a single scheme, aggregating that data could mask crucial differences in behaviour – and lead to wrong conclusions. Likewise, smaller employers often find themselves grappling with a limited sample size, in which a single data outlier can distort results. Unless these challenges are identified and addressed, employers will struggle to translate insights into meaningful action.
Attendees also heard how artificial intelligence (AI) is reshaping this landscape. Employers are already deploying AI to process clinical and demographic data, monitor benefits usage, and manage budgets. These always-on strategic tools are shifting the relationship between employers and their data, and supporting employers to optimise their benefits strategies. Nevertheless, any new technology must be embraced with caution. Implementing clear checks and protocols is essential to ensure transparency, security, and data quality.
4. How can I maximise the value of my benefits programme despite rising cost pressures?
Employers have been contending with several financial pressures in recent years – from rising wages and increased NI contributions to elevated borrowing costs and persistent inflation. As a result, we heard from many attendees looking to reassess their benefits spend. At the same time, employees are not immune to these pressures – and now more than ever, they will be looking to their employer for support.
Against this backdrop, there is greater need than ever for a disciplined approach to benefits management. Employers should consider how they can simplify and consolidate benefits to eliminate waste, and ensure budget is directed where it delivers the greatest impact. Once again, AI-powered analysis and dynamic budgeting tools can help employers to identify overlaps, and correct inefficiencies in real time before costs escalate.
Optimisation also becomes a strategic priority. Businesses invest significant resources into their benefit packages, but unless there is significant buy-in among employees, benefits will deliver little return. As a result, tracking uptake and employee satisfaction becomes crucial – ensuring programmes remain responsive to employee needs, and enabling employers to justify benefits spend.
5. Our benefits are in place – but employees aren’t engaging. What can we do to improve access, understanding, and utilisation?
The challenge of engagement was a concern that attendees raised time and time again. Even when employers invest heavily in comprehensive benefits, employees may struggle to access support, or understand what’s available. This confusion is often fuelled by fragmented pathways, duplicated services, and poor communication. As a result, benefits often go underutilised until a specific need arises.
What’s more, with five generations now working side by side, employers must accommodate an increasingly diverse set of needs and expectations. These differences don’t just manifest in which benefits employees value – but also how those benefits are accessed, and which forms of communication resonate most.
To improve engagement, employers must focus on removing barriers to take-up. Leveraging centralised employee benefits platforms can streamline the enrolment process, and ensure employees have access to relevant information and advice. This should be supported with clear, proactive communications that respond to key life and in-work events, such as onboarding or approaching retirement. Outreach should also be personalised by segment, reflecting age and demographic trends, and how expectations vary by geography.
As they respond to employees’ increasing demand for granular information around their benefits, employers may again look to adopt AI-enabled tools. These can live within existing workflows to give employees personalised answers on demand, help them understand which support is relevant to them, and guide them through the relevant pathway. As ever, these tools should be intuitive for all age groups – and must not exclude those without the confidence to use them.
Ultimately, if employers are to build trust in their benefits programme, they must apply the same discipline to the Employee Value Proposition that they devote to customer experience. Those who succeed will reap the rewards in the shape of improved engagement, attraction, and retention.
For more information, reach out to a member of our People Solutions team.
