Indian employers need to adapt benefits strategies to focus on preventive care, long-term health planning: Survey

There are high levels of well-being and satisfaction among Indian employees, but also growing expectations around flexibility, personalisation of benefits, and long-term support, finds a new report.

Employers have emerged as the most trusted source of affordable, quality healthcare, presenting to them an opportunity to outpace their competition by adapting their benefits strategy and building affordable coverage by focusing on preventive care and early detection to primary care, through outpatient provisions (OPD), according to the 2025 Health on Demand report by Mercer Marsh Benefits, which surveyed 18,000 employees across 17 markets.

The report, which had 1,030 respondents in India, finds that there is a growing emphasis in the country on longevity and planning for the future.

“As life expectancy increases and careers extend, employers need to prioritise building trust and commitment through benefits that support long-term health planning and financial well-being, ensuring their workforce thrives well into retirement,” Marsh McLennan India CEO Sanjay Kedia told ET.

While India has made strides in employee well-being, there is a critical need to move beyond generic programmes and embrace a more empathetic, personalised approach to benefits, finds the report. Employers who actively listen to their employees' needs and tailor their offerings accordingly will be best positioned to attract and retain top talent in today's competitive landscape.

While the global average of employees reporting delayed care is significant, in India, 25% of employees report having delayed seeking healthcare more than the past two years. This challenge is further amplified for employees in tier 2 and tier 3 cities, where access to specialised medical facilities and qualified healthcare professionals is often limited. Employers can address these barriers by exploring innovative care delivery models, such as telemedicine and partnerships with local healthcare providers.

Employees are also facing challenges associated with extreme climate events.

“While almost eight in 10 employees globally say that events such as floods and heat waves have impacted them or their families, the impact is even more pronounced in India, where 87% of employees report such impacts,” said Nimitha Menon, health risk management consulting leader at Mercer Marsh Benefits. Employers can work proactively to develop business resiliency plans that include benefits for employees facing financial hardship after a natural catastrophe, such as providing emergency savings and loan programmes, which over a third (36%) of employees say would be helpful.

As healthcare costs continue to rise, employers can build trust with their employees by ensuring they have access to affordable care. In India, 92% of employees are confident they can afford the healthcare they or their family may need. However, the top two reasons for delaying healthcare are financial reasons and anticipated long wait times. This suggests that even with insurance coverage, out-of-pocket costs and other financial considerations are still preventing some employees from getting the care they need.

As life expectancy increases and individuals work longer, employers should also consider prioritising benefits for their employees’ future. While eight in 10 (79%) employees globally want their employers to help them plan for health needs in retirement, confidence in employer support in India has dropped from 80% in 2023 to 75% in 2025. This decline highlights the urgent need for Indian employers to reassess their strategies and ensure employees feel genuinely supported, especially when it comes to long-term health planning.

Mental health also remains a significant concern for employees globally, with nearly half (47%) concerned about mental or emotional health decline, yet only one in five (22%) report their employer provides mental health screenings. This global trend resonates in India, where 59% of employees are concerned about mental or emotional health decline, and a significant 47% feel stressed in everyday life.