Artificial intelligence is becoming an increasingly useful tool for businesses that want a quick starting point when making important decisions.
As an Employee Benefit Adviser with over 30 years’ experience, I was curious to see how effectively AI could design an employee benefits package.
I had to be quite specific and refine my request a few times. The scenario I used was a new technology company in London with around 10 employees, looking to create a new employee benefits package and benchmark it against the market.
When asked to create a package, AI can produce a surprisingly strong first draft. It suggested many of the core benefits that small employers should consider, including a workplace pension, salary sacrifice arrangements, life assurance, group income protection, private medical insurance, an employee assistance programme, flexible working, annual leave enhancements and tax-efficient benefits such as electric vehicle or technology schemes. AI also suggested some providers. These are all sensible areas to explore and, for a new employer, they provide a useful framework.
AI identified the “building blocks” of a modern benefits package and would help employers think beyond just salary. For a growing London business competing for talent, this can be extremely helpful. A small company may not have the same budget as a large corporate employer, but it can still create a package that feels professional, competitive and thoughtful.
However, benefits design is not simply about listing products. This is where AI still has clear limitations.
One important area that AI often does not explore fully is the more intricate details and most competitive products. How should a Life cover scheme be set up? What is the difference between a Master Trust and Standalone Trust and what does this really mean to an employer? What providers should be used? The differences between pension, healthcare and protection providers can vary significantly. Charges, policy terms, service standards, claims processes, digital tools, investment options and renewal pricing can all make a major difference to both the employer and the employee. A pension scheme, for example, should not only be judged on whether it meets auto-enrolment requirements on the basic contribution rates. Member charges, investment choices, the quality of employee communication and competitive contribution levels within the employer’s industry are all important considerations.
Medical underwriting is another key area. Private medical insurance, group income protection and critical illness cover can all involve underwriting decisions. The right approach will depend on the size and profile of the workforce, salaries, eligibility rules and the provider’s terms. AI may suggest that certain products are suitable, but it cannot always assess the practical implications of underwriting, exclusions, free cover limits or future claims experience.
Employee benefits are also about much more than cost. A well-designed package should be bespoke to the workforce. What do employees actually value? Are they looking for healthcare, flexibility, family protection, pension support, wellbeing services or help with everyday costs? A benefit only has real value if employees understand it, appreciate it and use it.
This is where an adviser adds real value. An adviser can help an employer understand its workforce, compare providers, explain charges, consider underwriting, plan future budgets and build a package that can grow with the business. They can also help promote the benefits properly through employee presentations, clear communications and ongoing support.
AI is a useful starting point. It can generate ideas, highlight common benefits and help a business begin the conversation. But it cannot replace the experience of an adviser who can bring the benefits to life, make them interesting and ensure they feel worthwhile to employees.
I believe many employers will use AI for their initial thinking, but they will still rely on professional advice for final design, provider selection, ongoing support and employee engagement. A benefits package should not just look good on paper. It should work in practice, support the business as it grows and be valued by the people it is designed to help.
In summary, AI can provide a useful starting point and can help employers understand what a modern benefits package might include. However, an adviser adds the experience, market knowledge and human judgement needed to turn a list of products into a benefits strategy that employees understand, appreciate and value. For a growing company, that can make the difference between having benefits that simply exist and having benefits that genuinely support recruitment, retention and employee wellbeing.
And yes, I did use AI as a starting point for this blog; who doesn’t now?! But these are my thoughts and views.
If you are looking to create a new employee benefits package, or review your current one, contact a human at Wingate Benefit Consulting 😊
Wingate Benefit Solutions Info@wbs.e-innovate.dev or speak to a human on 01883 332260
