Employee Benefits Trends for 2025: What Does the Future of Employee Benefits Look Like?

The new year is an ideal time to evaluate how your business retains and engages employees. Emerging employee benefits trends offer insight into evolving priorities such as financial wellness, tailored benefit solutions, employee wellbeing, and support for remote and hybrid work models.

These trending employee benefits may help shed light on workers' needs and how you can drive benefits enrollment decisions to meet those needs. According to Paychex's 2025 Priorities for Business Leaders survey, employers are prioritizing increased pay (49%), improved benefits (41%), and flexible work schedules (40%) across all company sizes.

Employers need to take a strategic and informed approach to benefits to keep top talent. Companies can attract top talent and build a resilient workforce for 2025 and beyond by offering competitive, personal, and future-focused benefits.

8 Top Trends in Employee Benefits for 2025

As we move into the new year, employers should familiarize themselves with employee benefits trends to help guide their decision-making. Reviewing the emerging trends in employee benefits and responding with meaningful action can go a long way to keeping your employees happier, healthier, more productive, and loyal to your business.

1. Improving Healthcare Affordability
2. Total Health and Well-Being
3. Support for Onsite, Hybrid, and Flex Work Environments
4. Upskilling, Reskilling, and Professional Development
5. Personalized Benefits
6. Family-Friendly Benefits
7. Retirement, Debt Payoff, and Financial Security Benefits
8. Diversity, Equity, and Inclusion

1. Improving Healthcare Affordability

A healthy workforce is the foundation of productivity, creativity, and a positive work culture. Yet, the rising cost of healthcare and finding time to get treatment during a demanding schedule can be obstacles for employees seeking the care they need. The problem is that care deferred to a later date can mean increased medical claims later. And it's not just about treating a condition. Access to preventative care is equally important. Employers who actively make health care more affordable and accessible are sending the message that they care about their employees as people.

Employers are exploring several ways to address healthcare affordability, including virtual care options like telemedicine and wellness incentives to encourage preventative care. These can help reduce out-of-pocket costs for employees and may ensure timely treatment, especially for those with busy schedules.

Here are some ways to improve healthcare affordability:

• Offering telemedicine and virtual care options for easier access to healthcare services. Consider more differentiated options, like teletherapy and other non-insurance-related benefits and perks.
• Providing Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), which can help employees save on healthcare expenses and reduce employer tax liabilities.
• Introducing wellness incentives focusing on preventative care, such as fitness benefits or mental health resources.
• Educating employees during open enrollment to help reduce unnecessary expenses.

Health and wellness programs, such as mental health services and fitness benefits, are increasingly being used to support employees' overall well-being. Offering these benefits can be key in attracting and retaining top talent in today's competitive market.

2. Total Health and Well-Being

These days, employee benefits geared toward health and well-being go well beyond a health insurance plan. Findings from the Centers for Disease Control (CDC) link depression to an increased risk for many physical health problems, especially chronic conditions like diabetes, heart disease, and stroke. The CDC also points out that the presence of such conditions can increase the risk of mental illness. It can become an escalating feedback loop, often with dire consequences.

The interconnectedness between physical health, mental well-being, and financial wellness is driving employers to offer total health benefits that foster an emotionally, socially, and financially fit workforce. With 52% of employers focused on supporting employees' physical, mental, and financial well-being, it's clear that many business leaders understand the importance of total health.

You may provide health insurance plans paired with services that encourage healthy behaviors like good sleep hygiene, regular physical movement, smoking cessation, and addiction treatments.

Employers can also consider mental health-specific offerings such as teletherapy and virtual counseling sessions, which provide employees with flexible, stigma-free access to professional help. Integrating technology into wellness programs can create a seamless employee experience and increase participation rates.

Also consider:

• Employee assistance programs (EAPs)
• Comprehensive biometrics and lifestyle education programs
• Online resources and behavioral health education programs
• Suicide awareness training for managers

Balancing technology with a human touch is critical for mental health benefits. While virtual platforms make mental health services more accessible, employees still prefer human-centered approaches for addressing sensitive issues like stress management, conflict resolution, or severe mental health concerns. Combining tools with personal interaction can create a more holistic well-being strategy.

3. Support for Onsite, Hybrid, and Flex Work Environments

While a culture of remote work persists, many employees have now transitioned back to full or partial in-office work environments. How you support these arrangements—whether through full-time onsite work, hybrid setups, or flexible schedules—can significantly affect employee retention and satisfaction.

To create a great work environment:

• Enforce consistent rules: Clear and fair rules for on-site and remote employees help everyone stay on the same page
• Offer flexibility: To make on-site work more attractive, consider offering job sharing, flexible hours, or compressed workweeks
• Improve the office space: Improve productivity and well-being with comfy chairs, collaboration areas, quiet rooms, and natural light

Supporting hybrid and flex work means investing in the tools and tech employees need to succeed. Cloud-based collaboration tools and seamless communications platforms are key for hybrid teams. These enable employees to stay connected and productive wherever they work.

By thoughtfully balancing work arrangements and improving your team's workplace experience, you can keep employees engaged and motivated while meeting their individual needs.

4. Upskilling, Reskilling, and Professional Development

Opportunities for growth within an organization are becoming increasingly important to employees and are a key driver of retention. This is particularly true for Gen Z, the only generational group currently expanding in the small business employment sector. Many Gen Z workers actively seek chances to build and enhance their skills.

To meet employee expectations and remain competitive, focus on:

• Upskilling: Provide training to help employees learn new technologies or improve current skills.
• Reskilling: Prepare employees for different organizational roles by teaching them new skills to meet evolving business needs.
• Development programs: Offer learning opportunities such as workshops, certifications, job rotations, and peer coaching.

Employees who feel supported in their growth are likelier to stay and contribute meaningfully to the organization's success. Clear career pathways can also help employees see a future within your company, keeping them engaged and motivated.

5. Personalized Benefits

Depending on your workforce, a one-size-fits-all benefits package may not yield the value you hope to provide for your employees. As employees place higher priority on benefits (aside from pay), they will gravitate to those employers who are actively seeking ways to meet their needs.

Providing personalized benefits with digital access allows employees to tailor a customized benefits package that meets their individual needs. When employees have a seamless experience of picking and customizing benefits, it may encourage participation in benefits plans and may offer both employees and employers a better return on their benefits investment.

An excellent place to start in this area is first understanding the benefits employees look for in the company's offerings. You may want to use employee surveys and a current benefits audit to help shed light on this area. Gathering feedback, making data-driven decisions, and implementing a solid communications plan can all help convey which benefits are available to your employees, these benefits' value, and insight into how programs can be used.

What do personalized benefits include? They could be an array of voluntary benefits, or services that are either fully or partially paid for by the employee but at a group discounted rate made available by the employer.

Examples typically include voluntary benefits outside traditional benefits, such as:

• ID theft protection
• Accidental injury coverage
• Critical illness coverage
• Pre-paid legal plans
• Transportation benefits
• Pet insurance
• Homeowners' or renters' insurance
• Auto insurance
• Other types of insurance

You may be able to set up a reimbursement plan to help with medical expenses, remote work costs, or other perks that support your employees.

6. Family-Friendly Benefits

Caring for children or elderly dependents often involves significant financial and emotional stress. Daycare, healthcare, and enrichment programs can add up quickly, and many working parents juggle these responsibilities while managing full-time jobs, leading to burnout and exhaustion.

Employers are increasingly expanding family-friendly benefits beyond state or federal requirements to support their employees' physical and mental health.

Ways to extend family-friendly benefits include:

• Paid leave: Offer parental or family leave and surrogacy benefits to provide financial and emotional support during critical life events
• Dependent Care Flexible Spending Accounts (DCFSAs): Help employees offset daycare and ancillary care costs by offering pre-tax savings accounts
• Specialized reproductive health benefits: Meet diverse employee needs with benefits for family planning, support for high-risk pregnancies, infertility treatments, and menopause care

Expanding family-friendly benefits helps alleviate financial burdens and shows your organization's commitment to supporting employees in all stages of life.

7. Retirement, Debt Payoff, and Financial Security Benefits

Employee benefits trends that help workers address monetary concerns will continue to be popular in 2025. Financial insecurity, continued layoffs and downsizing, increased prices, and ongoing economic uncertainty have significantly stressed many workers. Offering benefits that promote financial stability can alleviate this burden and help employees focus on their work.

As a result, 49% of business leaders are focused on increasing pay and 41% on enhancing benefits, demonstrating to employees that financial stability is a priority as we head into 2025.

Examples of financial security benefits include:

• Retirement plans with company match: Help employees plan for the future by offering 401(k) or similar plans with a company match to boost their savings.
• Student loan repayment programs: Help employees tackle educational debt, a big challenge for younger workers.
• Debt payoff assistance: Provide resources or financial counseling to help employees develop a plan to pay off credit card or personal debt.
• Financial wellness: Offer tools like budgeting apps, financial planning workshops, and access to certified financial advisors.
• Banking alternatives and early wage access: To give employees more control over their finances, consider options like earned wage access or payroll-integrated savings programs.

By addressing employees' financial challenges with tailored benefits, companies can help employees reduce stress, improve overall job satisfaction, and demonstrate a commitment to their employees' long-term well-being.

8. Diversity, Equity, and Inclusion (DEI)

Though not a traditional benefit, today's diverse workforce may naturally gravitate to organizations taking thoughtful actions to create an inclusive and equitable work environment. A company that prioritizes diversity, equity, and inclusion (DEI) typically looks to foster a work environment that feels safe for sharing ideas and expressing creativity, along with an opportunity to access training, mentorship, and upward career growth.

Employers who do not recognize DEI as a trend in employee benefits may risk losing talented new hires who could bring valuable and much-needed alternative perspectives and ideas to the business.

Steps to strengthen your DEI commitment:

• Evaluate recruitment and hiring strategies to minimize bias and promote diversity
• Provide DEI training for management to build awareness and improve inclusivity
• Offer inclusive holidays, benefits, and recognitions that honor diverse backgrounds and often underrepresented groups

By embedding DEI into your workplace culture, you may be able to attract more top talent, enhance employee satisfaction, and demonstrate your commitment to a fair and equitable work environment.

Offer Your Employees the Benefits They Want in 2025

As employers strive to engage and retain a multi-generational workforce, a well-crafted benefits package can be a game-changer for your business, helping you stand out in a competitive market. Paychex can help you navigate emerging employee benefits trends, design the ideal package, and deliver a seamless digital experience that empowers employees to access affordable personal, professional, and financial benefits tailored to their needs. Plus, we offer ongoing, user-friendly support to help increase success for you, your team, and your business.

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