Embracing Change: Why Stagnation is the Real Risk in Employee Benefits Strategy

Today, I had an interesting conversation with a prospective client that prompted me to write this post. As a benefits consultant, I’m always looking to understand the needs, challenges, and culture of the businesses I work with. However, during this particular call, the response I received was concerning.

When I asked a few questions about their current benefit offerings and company culture, I was met with this statement: “We’ve been doing this for the last 40 years, and we’re not going to change anything.”

As I heard those words, I realized that this mindset is more common than many of us might think, regardless of a company’s size, industry, or longevity. It’s a mindset that can become a silent threat to growth, innovation, and ultimately, survival.

In today's rapidly evolving business environment, clinging to old strategies can be detrimental. The truth is simple: companies that fail to adapt and adjust to changing market conditions are more likely to fail. Whether it’s shifting regulatory landscapes, evolving employee expectations, or economic fluctuations, companies must evolve or risk being left behind.

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So, How Can We Encourage Adaptation?

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Here’s what we, as leaders, can do to help organizations overcome the inertia:

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1. Educate Leaders About Market Trends: Often, the resistance to change comes from a lack of awareness of how much the market and employee needs have evolved. Educating leadership about industry trends and new employee benefits that can enhance retention, productivity, and morale is essential.

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2. Showcase the Benefits of Flexibility: Flexibility isn’t just about remote work or hybrid schedules; it’s about being open to new strategies and approaches. Whether it's updating the benefits package or rethinking wellness initiatives, companies should be able to pivot in ways that align with both business goals and employee needs.

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3. Start with Small Changes: Sometimes, a major overhaul isn’t necessary to drive impact. Start by implementing smaller, pilot programs like mental health support, financial wellness programs, or flexible PTO policies. These small changes can lead to significant shifts in employee satisfaction and company culture.

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4. Lead with Empathy: Understand that change can be uncomfortable, especially when a company has had a particular way of doing things for decades. Leading with empathy and a clear explanation of why change is beneficial can often create more buy-in.

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5. Use Data as Your Guide: Whether it’s employee satisfaction surveys, engagement metrics, or market analysis, data can be a powerful tool to demonstrate the need for change. When leaders see tangible numbers indicating what’s working and what isn’t, the case for adaptation becomes stronger.

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Final Thoughts

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As I reflect on this conversation, I realize that the real issue is not whether change is needed, but rather how to encourage it in ways that align with the company’s long-term vision and culture. The companies that are proactive about adapting their employee benefits and workplace culture are not just reacting to the market—they’re positioning themselves to lead it.

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Are you ready to adapt and thrive? Or will you choose to stay the course and hope the landscape doesn’t change around you?

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Ask yourself these 4 questions

1: How can organizations balance tradition with the need for innovation in their benefits strategy?

2: What are some small, actionable changes that companies can implement to start evolving their benefits offerings?

3: How can leaders overcome resistance to change, especially in companies with a long-standing history of doing things a certain way?

4: How can data be used to persuade leadership about the benefits of adapting and evolving employee offerings?