Employee benefits trends: 5 considerations for 2025

Staying on top of employee benefits trends is crucial for brokers and benefits administrations. Organizations want to offer competitive packages that meet employees' evolving needs and help them stand out to prospective applicants. At the same time, workers want access to resources that support their professional development, personal goals and overall health.

Increasingly, benefits packages prioritizing employee well-being, flexibility and financial security have been gaining momentum, helping companies attract and retain top talent. From expanded mental health support to personalized benefit plans, 2025 will bring new opportunities for employers to build a happier workforce while managing costs effectively.

5 key employee benefits trends for 2025

As organizations look ahead to 2025 and try to craft a good employee benefits package, it's important to pay attention to trends. Here are five of the top benefits expected to gain traction and generate interest in the coming year.

1. Mental health and well-being support

Mental health continues to be a primary focus, and organizations are making it easier for employees to prioritize their well-being. Many businesses have included expanded support in benefits packages, from access to mental health apps and Employee Assistance Programs (EAPs) to initiatives that reduce stigma.

According to the Society for Human Resource Management (SHRM), 90% of employers offer mental health coverage as part of their benefits. Some companies are also exploring additional offerings, such as on-demand virtual therapy and stipends for mental health, allowing employees to access customized care when needed.

This trend reflects the growing recognition that happier, healthier employees are more engaged and productive. Mental health plays a major role.

2. Flexible and personalized benefits

The demand for benefits that meet various employee needs is rising. Personalized benefits, such as flexible work arrangements, wellness programs and tailored resources, are becoming more important for businesses to attract and retain top employees.

According to an Optavise survey, 87% of employers now consider nonmedical benefits like wellness programs and flexible work requirements extremely, very or moderately important. Voluntary benefits, such as life insurance, critical illness insurance and pet insurance, are all examples that are gaining traction.

These benefits, combined with a core package, give employees more personalized options that support their needs while improving overall employee satisfaction and loyalty.

3. Technology-driven benefits management

As technology evolves, so does the way benefits are managed. Artificial intelligence-driven platforms that automate routine tasks while providing personalized recommendations can help employees make better benefits choices, especially during open enrollment. Integrated benefits platforms also make it easier for employers to manage their offerings, reducing costs and administrative burdens.

SHRM reports that 56% of employers provide technology to support at-home work arrangements. This shift has helped companies create seamless benefits experiences that align with employees' needs and communication preferences.

Employers may continue to streamline the benefits experience by integrating technology that offers real-time, personalized benefits guidance. Virtual benefits assistants and chatbots are becoming more common, helping employees navigate their benefits and make more informed decisions based on their circumstances.

4. Financial wellness programs

Financial wellness is becoming a critical part of benefits packages. Many organizations now offer employees services like debt management assistance, financial planning and student loan repayment support. It's a growing trend — about 34% of employers are considering adding financial wellness programs in the next one to two years, according to the Optavise survey.

Lifestyle spending accounts (LSAs) are also becoming popular. These employer-sponsored plans set aside funds for employee discretionary spending on approved items such as home office equipment, professional development and commuter assistance. These benefits give employees extra financial support, helping them manage unexpected expenses.

In addition, these benefits packages can help employees feel more financially secure. As a result, this can reduce stress and increase engagement at work — approximately 25% of employees say financial stress lowers their productivity.

5. Family and caregiving support

Employers are increasingly focusing on benefits that support family care and caregiving needs. From parental leave to eldercare services, these benefits can stand out to a multigenerational workforce and employees balancing caregiving needs and challenges (for both children and parents) at home.

Family planning benefits are also becoming a key part of employee support. Now, 42% of employers offer fertility-related benefits, up from 30% in 2020. Many benefits packages include coverage for fertility treatment and testing for both men and women. According to SHRM, 40% of employers offer paid parental leave, with many expanding policies to include more flexible care options.

Supporting employees' family responsibilities can boost morale and help companies stand out.

Choosing the right benefits for your workforce

Employers must learn their workforce's needs and decide which benefits can satisfy employees while giving the company a competitive edge. Sending out employee surveys or requesting direct feedback can help flag the benefits that will resonate the most. Understanding these preferences can help organizations invest in the benefits that drive higher satisfaction.

Cost is another important factor. Employers should evaluate the short- and long-term financial impact of new benefits. For example, strategies like voluntary benefits programs can provide more of the options employees want without significantly increasing organizational spending.

Finally, consider a benefits program that aligns with company values and culture. That can help attract new employees while reinforcing a positive workplace with the current staff. The right mix can improve employee well-being, build loyalty and help employers stay competitive in a changing labor market.

Implementing new offerings to attract and retain talent

Adapting to evolving employee benefits trends can help create a comprehensive benefits package that resonates. Organizations can attract and retain top talent by prioritizing flexibility, well-being and personalization, building a more engaged, happy and productive workforce in 2025 and beyond.

To learn more about employee benefit trends and best practices for adding them to your organization's offerings, contact an Optavise representative today.

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Optavise is a trusted partner, guiding employers and their employees through healthcare choices including voluntary benefits, benefits administration, and year-round advocacy services that reduce costs and increase benefits engagement.