Organizational Wellness

Top 6 Employee Benefits Trends That Will Shape 2025

Last Updated Dec 11, 2024

Time to read: 10 minutes

The traditional benefits package is obsolete. Gone are the days when a standard health insurance plan and a 401(k) were enough to attract top talent. Today’s employees are looking for jobs that support their overall wellbeing rather than just physical health and retirement. In fact, as revealed in Wellhub’s State of Work-Life Wellness 2024 report, 93% of workers think their wellness is just as important as their salary.

So what can you do to catch up with this sea change?

Forward-thinking companies are responding to these changes in employee dynamics by revamping their benefits strategies. They’re moving away from rigid and inflexible benefits packages to personalized solutions that acknowledge each employee’s unique needs and circumstances. As an HR leader, staying on top of these employee benefits trends will help you stay competitive and keep your employees happy, engaged, and thriving.

Trend 1: Personalized Benefits

A one-size-fits-all benefits package won't do much when it comes to attracting and retaining talent. The workforce has changed, and potential employees expect benefits that fit their unique needs and lifestyles. But this shift isn’t just about employee preferences. It’s about recognizing that your Gen Z intern might need different support than your senior manager with three kids.

You can support your employees in all stages by offering:

Flexible workarrangements: The future of work is flexible. In fact, almost 95% of workers benefit from flexible schedules, according to a Deloitte survey. Offer remote work, hybrid schedules, or compressed workweeks that let employees choose when and where they work best. Some might thrive in a quiet home office, while others need the energy of workplace collaboration.
Choice-based benefits plans: Create benefits options that let employees build their ideal package. Include traditional options like health insurance along with newer benefits like pet insurance or fertility treatment coverage. Let employees allocate their benefits budget according to their priorities.
Lifestyle spending accounts: Give employees the freedom to invest in what matters most to them. These accounts can cover everything from fitness classes to professional development courses, home office equipment, and even mental wellness support.
Customizable health plans: Offer tiered health insurance options that let employees choose their coverage level and deductible. You can also offer add-ons like dental and vision, and specialized care so employees can build the plan that works best for them.
Professional development funds: Create personalized learning budgets that employees can use for courses, certifications, or conference attendance based on their career goals. This is one of the most popular benefits, as over 90% of workers consider professional development to be important, according to a BetterBuys survey.

Trend 2: Holistic Wellbeing

Offering a gym membership is great, but it's not enough to cover all of aspects employee wellbeing. Today's workforce wants support for their whole selves — mind, body, and wallet. As revealed in Wellhub’s Return on Wellbeing 2024 report, 85% of workers think their workplace should help them improve their wellbeing. And more than half of all workers are even willing to change jobs to find employers who prioritize their wellbeing, according to a Maven report.

Here’s how to offer holistic wellbeing:

Mental wellness support: Provide multiple ways to access mental health support, from counseling services through EAPs to subscriptions for meditation apps. Include stress management workshops and create quiet spaces for mindfulness practice during the workday.
Financial wellness resources: You can help employees reduce money stress through financial planning tools and education. Consider offering student loan repayment assistance, financial advisors, and emergency savings programs that give your employees an extra safety net.
Physical health programs: Working out can increase productivity in workers, according to a 2024 study published in the Journal of Modern Medicine. That’s why it’s so important to create comprehensive physical wellness programs that go beyond basic fitness. Include regular health screenings, ergonomic workspace assessments, and engaging fitness challenges that build team spirit while promoting health.

Trend 3: Financial Wellness

Financial stress affects everything from workplace productivity to mental wellness. In fact, about one-quarter of workers think that financial concerns affect their workplace productivity, according to a SoFi study. That’s why smart employers are expanding their financial wellness offerings beyond the basic 401(k) plan to help employees build real financial security.

Try offering some of these options to your employees:

Financial literacy programs: Launch comprehensive financial literacy programs that meet employees where they are. Some might need basic budgeting strategies while others may benefit from advanced investment strategies. Give them the tools they need to make financial planning an exciting — not stressful — experience.
Retirement planning support: Offering retirement accounts is just one part of the equation. Your employees also need the education and support to use them effectively, including workshops, financial counseling, and the right budgeting apps.
Emergency savings funds: Help employees build financial resilience through emergency saving initiatives. You could implement programs that make saving automatic and easy, or even consider matching employee contributions to emergency funds.
Employee assistance programs (EAPs) with financial counseling: Partner with financial professionals who can provide personalized guidance to your employees. Look for EAPs that include financial counseling and explore bringing financial advisors for regular office hours or consultation sessions.
Student loan support: Many of your employees may be saddled with college debt, especially in your entry-level positions. These programs are designed to help workers tackle their student loans. This could include direct contribution programs where the company makes payments toward employee student loans, refinancing resources, or financial counseling specifically focused on debt management.
Financial wellness technology: An easy win is to provide discounted or complimentary subscriptions to financial wellness apps and platforms. Look for tools that combine budgeting features, investment tracking, and educational resources in a user-friendly interface. These platforms can offer personalized recommendations based on individual financial goals and circumstances.

Trend 4: Flexibility

The traditional 9-to-5 office schedule is, perhaps shockingly, becoming obsolete. This shift represents a fundamental change in how workers think about work, moving away from the traditional requirement of working at an office to instead working where they work best.

Try some of these strategies for flexibility:

Remote workoptions: Offer fully remote positions that let employees work from anywhere. To do this, you’ll want to have the necessary technology, set up clear communication protocols, and create virtual team-building opportunities that maintain connection across long distances.
Hybrid workmodels: An easy way to dip your toes in the remote work world is to offer some hybrid opportunities that combine office and remote work. Some teams may need constant collaboration while others don’t. So, let your teams determine their optimal mix of in-office and at-home days.
Flexible scheduling: You can support your employees by going beyond rigid workday structures to embrace models like flex time, compressed workweeks, or adjusted hours for different time zones. Create clear documentation practices, use virtual collaboration tools, and establish guidelines for when real-time interaction is necessary versus when work can flow independently.
Unlimited PTO: Think about implementing unlimited paid time off policies that focus on results rather than hours worked. To do this, start by creating guidelines that prioritize actual results over simply spending time at the office.
Job sharing: Create opportunities for two employees to split one full-time position temporarily or permanently. This can give workers the time to focus on other endeavors or tend to personal matters while staying productive at work.

Trend 5: Integrating DEI

Diversity, equity, and inclusion (DEI) can have a tremendous impact on your team’s emotional and mental wellbeing. This is evident in your team’s productivity, as employees who feel heard at work are more than three times as likely to be highly engaged, according to Forbes. That’s why it’s so important to understand and support the diverse needs of your workforce with offers such as:

Inclusive parental leave policies: Implement gender-neutral parental leave policies that support all types of families. Include adoption, surrogacy, and foster care support to allow your employees to build their families in the way that works best for them. And don’t forget to include single parents and same-sex couples in your guidelines.
Fertility benefits for LGBTQ+ employees: Expand fertility and family-building benefits to support LGBTQ+ employees and others pursuing non-traditional paths to parenthood. Include coverage for treatments like IVF, egg freezing, and surrogacy services.
Culturally relevant benefits: As a diverse employer, your benefits should reflect and respect different practices and beliefs. This might include flexible holidays for different religious observances, mental health providers from diverse backgrounds, or benefits that cover alternative medicine practices.
Disability support: Create comprehensive support systems for employees with disabilities. Include coverage for assistive technologies, workplace modifications, and specialized healthcare needs. Also, your benefits communications and platforms should be fully accessible to employees with disabilities.

Conducting a Benefits Equity Audit

Doing a benefits equity audit is a great way to see how your benefits measure up when it comes to diversity. A regular equity audit can help you change your offerings so that you can support all employees fairly, regardless of their background or circumstances. Here’s how to do one:

Step 1: Data collection: Start by gathering comprehensive data on benefits utilization across different employee demographics. Look at who’s using which benefits, identify any patterns in enrollment rates, and analyze participation across departments, levels, and locations. The more data you gather, the more accurate your audit will be.

Step 2: Review your current policies: Carefully comb through the language in your benefits documentation. Check for unintentionally exclusive terms or requirements that might create barriers for certain groups. Review eligibility criteria, waiting periods, and coverage definitions.

Step 3: Evaluate communications: Think about how your benefits information is currently being communicated. Maybe there are language barriers or your remote workers don’t have access to the healthcare brochures in the HR office. Look at ways employees may be getting left out of the benefits conversation.

Stp 4: Financial impact: Analyze the out-of-pocket costs and coverage levels across salary bands. Look for disparities that might make certain benefits effectively inaccessible to lower-paid employees.

Step 5: Collect feedback: Gather anonymous input from employees about their benefits experiences and needs. Pay special attention to feedback from underrepresented groups and employees with unique circumstances to get different perspectives of how others might be perceiving your benefits.

Trend 6: Leveraging Technology and Data

Technology is constantly changing how we deliver and manage employee benefits. Smart HR leaders are using tech solutions to create more personalized, efficient, and data-driven benefits programs. Here’s how you can join them:

Benefits administration platforms: Implement comprehensive platforms that simplify benefits selection and management. Look for solutions that offer mobile access, intuitive interfaces, and integration with existing HR systems. These platforms should make it easy for employees to understand, compare, and choose their benefits.
AI-powered solutions: You can now use artificial intelligence to provide 24/7 benefits through chatbots and virtual assistance. These tools can answer common questions, guide employees through enrollment, and provide personal recommendations based on individual circumstances.
Personalized benefits portals: Create customized digital experiences that show employees their total rewards package and help them make informed decisions. These portals can have advanced tools for comparing options, calculating costs, and modeling different scenarios, ultimately helping employees make the best choices for themselves.
Data analytics tools: Take advantage of your analytics platforms to track benefits utilization, measure program effectiveness, and identify trends. You can then use this data to make informed decisions to change your programs and offer new ones.

Stay Ahead of the Curve With Competitive Employee Benefits

Creating an effective benefits strategy demands a deep understanding of your employees’ diverse needs, from workplace flexibility to varying healthcare needs. That’s why these employee benefits trends are changing how employers and HR professionals are structuring their benefits offerings to better support all workers.

A comprehensive employee wellbeing program can serve as the foundation for your benefits strategy. By integrating physical, mental, and financial wellness initiatives, you create a support system that helps employees thrive personally and professionally.

Wellhub can help you create a program that supports your employees’ total wellbeing while improving engagement and retention. Speak with a Wellhub Wellbeing Specialist to see how we can help you revolutionize your benefits offerings!

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[*] Based on proprietary research comparing healthcare costs of active Wellhub users to non-users.