As New Jersey businesses navigate a landscape of rising prices and a tightening labor market, a new study from local tech giant Conduent Incorporated reveals a widening gap between what it costs to provide health insurance and what employees expect from their bosses.
The Florham Park-based business solutions firm released its 2026 Blueprint for Smarter Health Survey Thursday, highlighting a “critical tension” in the C-suite: how to fund the robust wellness benefits needed to keep talent in the Garden State without breaking the bank.
The data paints a sobering picture for New Jersey’s large employers. With historic health care inflation rates, 69% of employers now expect medical trend rates to surge above 7% this year.
Key AI Trends from the Survey:
- 71% of organizations are currently implementing AI-driven tools to guide employees through open enrollment.
- 64% plan to offer virtual assistants to answer complex benefits questions 24/7.
According to the report, the compounding effect of these increases is staggering. Compared to 2017, health care costs are projected to be 62% higher in 2026. For a typical New Jersey corporation with 10,000 employees, this trend translates to roughly $5 million in additional annual spending just to maintain current coverage levels.
“Health care costs will continue to rise, and organizations must balance cost containment with the need to provide comprehensive health and wellness benefits,” Kimberly Marshall, chief commercial officer at Conduent said.
Despite the cost pressures, North Jersey HR leaders aren’t looking to slash benefits. Instead, they are viewing them as a “talent lever.” The survey found that 65% of employers now measure the success of their benefits packages by how well they attract and retain employees.
In 2026, the “gold standard” for a Jersey-based benefits package has shifted toward:
-
Mental Health Programs: Ranked as the top priority for 65% of employees.
-
Personalization: Workers no longer want “one-size-fits-all” plans; they want benefits tailored to their specific life stages and health needs.
To bridge the gap between high costs and high expectations, Conduent is betting on artificial intelligence; the firm’s Life@Work Connect® platform, developed in Florham Park, is designed to help employees make “smarter” choices that often result in lower costs for both the worker and the company.
Conduent remains a cornerstone of the Morris County business community. With approximately 51,000 associates globally, the latest research underscores the company’s shift toward high-tech, AI-integrated HR services—a move that mirrors New Jersey’s broader evolution into a premier “Innovation State.”
