Carol Wagoner, Market President, Gallagher

In an interview with Invest:, Market President Carol Wagoner of insurance, risk management, and consulting firm Gallagher discussed how employers are rethinking benefit strategies as costs rise, workforce demographics shift, and expectations for employee experience evolve. “Employers must understand their workforce demographics and design a credible value proposition that resonates across generations. It is not one size fits all,” Wagoner said.

How have changes in the benefits landscape over the past year influenced the way Gallagher advises employers in the Triangle?

It has been a year defined by employers trying to take a more holistic approach to their people strategy while balancing costs and risk. One of the most notable shifts we’ve seen is the continued unbundling of benefit plans. Historically, if you were part of a group health plan, you went to one carrier for everything. That model has changed. Targeted and highly specific point solutions have entered the market, and employers are bolting them onto their core medical plans.

You may have your main health insurance carrier, but on top of that, you now see behavioral health modules, family planning programs, virtual care platforms, employee advocacy services, and other tools that target particular needs. The goal is to offer more choice and flexibility while meeting employees where they are and still managing costs. Not every employee will need a family planning solution or a behavioral health program, but for those who do, these resources can be significant. 

The labor market has also softened, and we’re not seeing as much movement or as many new jobs created. That has created a sense of stability within many organizations’ workforces. With that stability, employers are thinking more about engagement rather than simple retention. These are team members who have been with them, are not looking to leave, and want to feel supported. Benefit structures are a major lever for strengthening that engagement.

What does it look like to use benefits as an engagement tool across a multigenerational workforce?

Many companies today have as many as five generations represented in their workforce. You cannot reward or support all five generations in the same way. Employers are becoming much more intentional about recognizing those differences and structuring benefits that meet people where they are in their own lives and careers.

For younger professionals, especially millennials and Gen Z, the biggest priorities tend to be affordable and accessible healthcare. They want protection when they get sick, and they want convenience. Virtual care is incredibly effective for them. They can connect with a provider quickly, get what they need, and move on with their day, especially if they are working remotely or have hybrid schedules. That level of accessibility matters.

For employees later in their careers, the needs shift. Topics like menopause benefits are now entering the workplace in a meaningful way — something that would not have been discussed decades ago. Point solutions that support women experiencing menopause are increasingly common and increasingly valued. Family planning is another example. More employees are choosing to start families later in life and need additional resources to support those decisions.

Some benefits speak to personal priorities regardless of age. Pet insurance, for instance, can be a surprisingly strong engagement driver for certain demographic groups. The larger point is that employers must understand their workforce demographics and design a credible value proposition that resonates across generations. It is not one size fits all.

How is technology and data changing the way employers evaluate their HR and benefits investments?

Data is knowledge, and Gallagher has invested heavily in data and analytics to strengthen our ability to support clients. We have robust tools that allow us to take a client’s historical data, combine it with what is happening in their population today, and predict future costs with much more accuracy. That predictive capability is essential because it helps employers look ahead rather than only react to the past.

We use analytics not only to forecast where costs are likely to arise but also to identify the underlying drivers. Once we know what the drivers are, we can offer tailored strategies to mitigate them. In the past, employers were often dependent on the data they received from insurance carriers, which was typically backward-looking, focusing on how many people were sick, how many claims occurred, and what those claims cost. Now, with predictive modeling, we can help clients budget more effectively, make informed decisions, and understand where their population is trending.

In North Carolina, we can deploy these analytics tools for employers with workforces over 100 people because that tends to be the threshold where data becomes robust enough to produce meaningful insights. With that information in hand, employers can plan proactively and choose solutions that fit both their workforce and their financial objectives.

Which trends could shape benefits and workforce decisions over the next few years?

Cost remains the most significant trend. You cannot talk about employee benefits without acknowledging the cost trajectory, particularly in pharmacy. Pharmacy trends continue to outpace medical trends, and that puts pressure on employers because most people access healthcare through employer-sponsored plans. As therapies and drugs become more advanced, the associated costs rise. While this is undeniably beneficial from a clinical perspective, it comes with financial implications that employers must absorb.

Medical costs overall are also rising. Healthcare is not getting cheaper, and double-digit premium increases year after year are not sustainable for most employers. That reality is driving a push for more creative cost-management strategies and more innovative plan designs. Employers will need to think differently about how they manage these rising expenses while still offering competitive, responsive benefits.

Another trend we are watching closely is the relationship between carriers and healthcare providers. In the Raleigh-Durham market, two major hospital systems are currently in contract negotiations with major carriers. This is becoming a pattern — when contracts expire, months-long negotiations often follow. During those periods, members feel vulnerable because they do not know whether their providers will remain in the network. Although these negotiations typically take place every few years, their impact is significant. Employers and employees bear the brunt of the uncertainty, and we would like to see a more stable, sustainable approach to these relationships.

The final trend is the shift toward a “whole-life” view of the employee experience. It is no longer purely about work-life balance but about recognizing that employees bring their whole selves to work every day. Remote work, hybrid schedules, return-to-office decisions, and now concepts like micro-shifting all demonstrate how fluid the modern workplace has become. Understanding where and how people work, and how that affects their well-being, will continue to shape benefit strategies and workforce planning.

Looking ahead three to five years, what are Gallagher’s priorities in the Triangle?

Growth is always a key priority. We want to continue expanding our brand, footprint, and team in this market. The Triangle is an attractive region with tremendous opportunity, and we see ongoing potential for Gallagher to support organizations here.

Equally important is retaining and serving our existing clients. Gallagher is uniquely positioned to address virtually any need that touches the employee or the organization. Staying close to clients, listening carefully, and understanding where gaps exist allow us to deliver solutions that help them accomplish their goals.

We will also continue to innovate in our consulting approach, exploring new ideas, testing products, and bringing forward creative solutions that meet clients’ evolving needs. Strong data and analytics will remain foundational to that work. Validating our recommendations with solid quantitative insights ensures clients can move forward with confidence.

Finally, supporting our local team is essential. The way we grow and the way we serve clients begins with ensuring our colleagues are engaged, fulfilled, and provided meaningful opportunities. When we take care of our people, they take care of our clients, and that is ultimately what drives success in this market.