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86% of employees receive benefits packages, and 90% of HR teams are expanding their offerings. What brands need to know about the growing DACH benefits market.
When marketing professionals think about channels, search engines, social media, marketplaces, and influencers come to mind. The employee benefits market rarely appears on this list—even though it has become one of the most reliable ways to reach working consumers in the DACH region in recent years.
The key figures show why it’s worth taking a closer look. About 86 percent of German employees now receive benefits packages from their employers, and the trend is on the rise. And this growth is continuing: 90 percent of HR managers plan to expand their benefits portfolio over the next two years. For brands, this means a growing pool of employers who are actively seeking attractive offerings for their workforce.
This article analyzes the brand market: how it is structured, why it is growing, and what role a brand can play within it.
The DACH benefits market has become noticeably more professional in recent years. Whereas companies used to laboriously manage individual benefits on their own, digital platforms now bundle these offerings and make them accessible to employees through a single interface.
Broadly speaking, there are two types. On the one hand, there are platforms that manage tax-optimized benefits in kind—meal allowances, transportation budgets, non-cash benefits, and the like. On the other hand, there are discount and deal platforms that provide employees with exclusive terms on a wide range of brands. For consumer brands, the second type is particularly relevant: here, the brands themselves become part of the offering.
A key driver of professionalization: Today, digital platforms allow even small and medium-sized businesses to use them easily and with minimal administrative burden. This increases the number of participating employers—and, with it, the target audience that brands can reach.
This growth is no accident; it is the result of several reinforcing forces.
For brands, the result is encouraging: a growing market means more participating employers, more employees to reach, and thus a channel whose reach is expanding rather than shrinking.
For a consumer brand, there is a clear position in the benefits market: that of the attractive offerings an employer wants to provide to its employees. The better these offerings align with the daily lives of working people—whether in fashion, nutrition, travel, housing, or wellness—the greater the impact.
Through a platform like FutureBens, hundreds of brands—including both established top brands and sustainability-focused pioneer brands—reach employees at numerous employers across the DACH region. The brand becomes part of a curated selection that employers make available to their employees with no effort on their part. For the brand, this results in predictable reach among a target audience with strong purchasing power in a trusting environment.
The appeal lies in getting in early. A growing market rewards brands that position themselves before the channel becomes oversaturated—much like establishing an early presence on a new platform, while attention still doesn’t come at a high cost.
A few key questions can help in assessing the benefits market: How large and how relevant is the target audience for your offering? Does visibility occur in a protected, curated environment? And how much effort is required to participate?
A good channel reaches a relevant, affluent target audience in a way that protects the brand, with minimal effort. The DACH benefits market meets these criteria for many consumer brands—and continues to grow, making it one of the more interesting among the less obvious marketing channels.
The employee benefits market is larger and more dynamic than its low profile in marketing circles would suggest. With 86 percent of employees already receiving benefit packages and a clear trend toward expansion among employers, it represents a growing channel for reaching working consumers in the DACH region. Brands that enter this market early and effectively secure reach in an environment that protects their value rather than diluting it.
Would you like to know what role your brand can play in the DACH benefits market? Learn more about partnering with FutureBens.
How large is the employee benefits market in the DACH region?
About 86 percent of German employees receive employee benefits from their employers, and this trend is on the rise. Ninety percent of HR managers plan to expand their benefit offerings over the next two years.
What types of benefits platforms are there?
Broadly speaking, there are two types: platforms for tax-optimized benefits in kind (meal allowances, transportation, benefits in kind) and discount or deal platforms that provide employees with exclusive brand offers. For consumer brands, the second type is particularly relevant.
Why is the benefits market growing?
Three factors: competition for skilled workers, the tax efficiency of many benefits compared to salary increases, and digitalization, which enables even smaller employers to participate.
What role does a brand play in this market?
The attractive benefits that employers offer their employees. This is particularly effective for consumer brands whose offerings align with the daily lives of working people.