San Francisco, 17 January 2024: The Report Employee Benefit Broker Market Size, Share & Trend Analysis Report By Benefit Type, By Application (Healthcare, IT & Telecom), By Region, And Segment Forecasts, 2024 - 2030

The global employee benefit broker market size is anticipated to reach USD 61.37 billion by 2030 and is anticipated to expand at a CAGR of 5.5% during the forecast period, according to a new report by Grand View Research, Inc. The growth of the employee benefits broker market can be attributed to grabbing the top talents in the industry. The perfect employee benefits package can help employers attract and retain their employees. Furthermore, these benefits make an employer stand out from the competition and eventually drive overall business growth.

The market growth is propelled by continuous technological advancements, particularly in the IT industry. Furthermore, the development of employee benefits platforms enabling employees to better communicate with HR professionals is driving the market’s growth. In addition, the remote work culture and increased focus on work-life balance are anticipated to drive the market’s growth.

The global pandemic had a slight positive impact on the growth of the market. As employers navigate the challenges of the pandemic and beyond, the market continues to grow, reflecting the commitment of organizations to support their employees in an ever-changing work landscape. Furthermore, employers, understanding the profound impact of the pandemic on their workforce, have adapted their benefit packages to accommodate the evolving needs of employees.

The expansion of the employee benefits broker market can be attributed to various factors, including the intensely competitive talent landscape. In a job market where attracting and retaining top-notch employees is paramount, companies offer increasingly enticing employee benefits to gain a competitive edge and secure the commitment of skilled professionals. Furthermore, retirement benefit packages, such as 401(k) plans or defined employee benefits plans, have become increasingly vital in the effort to attract and retain employees.

Modern employees seek comprehensive and adaptable benefit packages that encompass perks, including wellness programs, flexible work arrangements, and avenues for professional development. This diversity in employee demands necessitates a multifaceted approach to benefits that can appeal to a broad demographic, from millennials to baby boomers, further fueling market growth. However, these benefits are to be paid by the companies to retain their employees, as it is harder to retain employees in the same company. For instance, according to a survey, 63.3% of companies say retaining employees is actually harder than hiring them.

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Technological advancements in the areas of high internet speed and digitalization across industries have played a pivotal role in the growth of the market. These technologies have enabled employers to streamline benefits administration and offer convenient access through online platforms and mobile applications. Furthermore, employers are adopting digital channels to enhance communication and employer benefit support. For instance, according to a report in 2023 by Marsh McLennan, an insurance company, 69% of HR employees are planning to increase investment in digital benefit platforms for supporting benefit administration and communication in the next one to three years.

Employee Benefit Broker Market Report Highlights

• The healthcare insurance segment dominated the market in 2023. The segment's growth can be attributed to the increasing demand for healthcare insurance post the COVID-19 pandemic globally
• The IT & telecom segment dominated the market in 2023. IT professionals across the globe are well-paid and expect their employers to provide perks and employee benefits
• ·The North American region dominated the market in 2023. The presence of prominent market players and the rising demand for employee benefits by employees across the region is anticipated to fuel regional growth
• ·The rising launches of various programs and products related to employee benefits are anticipated to fuel the growth of the market. For instance, in July 2023, City of San Diego's introduced an employee benefit program to help with childcare costs. This program was aimed at supporting the City of San Diego's workforce with a childcare benefit program

The legal requirements play a pivotal role in stimulating the expansion of the market. Across several jurisdictions, employers are legally obligated to provide specific benefits to their workforce, such as health insurance or retirement savings plans. For instance, in the U.S., The U.S. Department of Labor's Employee Benefits Security Administration is responsible for administering and enforcing the provisions of ERISA (Employee Retirement Income Security Act). Furthermore, these regulations necessitate compliance, which, in turn, contributes to the growth of the market.

While the employee benefits broker market is poised for growth from 2024 to 2030, it does face certain challenges. These obstacles involve the rising cost of providing comprehensive benefits packages. Furthermore, employers must grapple with the increasing expenses associated with health insurance, retirement plans, and other benefits, which can strain their budgets. In addition, balancing cost containment with the desire to offer competitive benefits becomes a complex task. However, with a strategic goal and providing work-life balance, companies can overcome these challenges and improve employee retention rates.

Employee Benefit Broker Market Report Scope

The employee benefits broker market faces substantial regulatory scrutiny owing to concerns surrounding consumer protection, data privacy, and fair practices. Governments globally are actively formulating stringent regulations to govern this sector, aiming to ensure ethical conduct, safeguard consumer interests, and shape the evolution and adoption of benefit-related technologies and services. Such regulations are significantly influencing the market.

In the employee benefit broker market, there are very few things that can directly replace the services they provide. While some technologies, like basic automation or rule-based systems, can do similar tasks in certain cases, they usually can't match the effectiveness and flexibility of dedicated employee benefit broker services.

List of Key Players in the Employee Benefit Broker Market

• AON
• Marsh & McLennan
• Willis Towers Watson
• Arthur J. Gallagher
• NFP
• Hub International
• USI
• Lockton
• Brown & Brown
• OneDigital Health and Benefits