Employees are increasingly seeking benefits customized to their individual needs and circumstances, as well as those that promote their mental and financial well-being. As organizations plan for 2025, it is crucial to stay informed about emerging trends in employee benefits to remain competitive and attract top talent. The following are some to be aware of and consider offering.
Retirement and Student Loan Repayment Options
Some generations are inching closer to retirement and want to make the most of the contribution limits, while others are more focused on paying off student loans than putting money away for retirement. The Secure 2.0 Act has made it easier to assist with student loan repayments via retirement contributions. An employer can make a matching contribution to an employee's defined contribution retirement account when the employee makes a payment toward a qualified student loan. This benefit is a versatile offering for all generations in your workplace.
Mental Health
Health savings accounts (HSAs), flexible spending accounts (FSAs), and employee assistance programs (EAPs) are great ways to support the mental health of employees. Employers can contribute or match employee contributions in some cases, which can make this a desirable benefit for employees. There are many add-on benefits plans out there ranging from meditation programs to in-person discounted or free therapy sessions.
Affordable Health Care
According to Mercer, health benefit costs per employee are expected to rise by more than 5% for the third consecutive year in 2025. The accelerated health care costs likely have caught your CFO’s attention. This is a fine line for HR to walk as they balance requests from employees to lower costs and the CFO’s desire to find cheaper options for the company. Some options to manage costs for all involved are considering other carriers, switching the type of plans offered (HDHP vs. HMO), plan-funding considerations to manage fees, and adjusting plan specifics (deductible amounts, the out-of-pocket max, etc.).
Childcare Benefits
There is still a barrier to women entering and staying in the workplace at a proportional rate. The cost of childcare can be the same as a mortgage payment, and many parents would rather stay at home with their children when the cost is so high. Another issue is lengthy waitlist times due to the lack of providers needed to keep up with demand. A dependent care account is a strong offering, as is on-site daycare and backup daycare. Childcare benefits continue to be at the forefront of what employees need.
Fertility Benefits
According to the Centers for Disease Control and Prevention (CDC), 13.4% of women and approximately 9% of men struggle with their fertility. Reviewing health insurance plans to see what is covered for services related to infertility treatments and alternatives is increasingly important. Many insurance plans still fall short in this area.
Integrated health reimbursement accounts are a popular option as they are limited to a monthly amount the employer contributes, and any unused money is remitted back to the employer, similar to an FSA. A health stipend is also a strong choice as it can be used for many wellness options, and the employee owns the account, similar to an HSA.
Employers must continue to reimagine their benefits offerings to align with the changing priorities of a diverse and dynamic workforce. Learn more about how to do this by enrolling in Employers Council’s training course titled Benefit Administration: The Basics from A to Z. If you have any questions, please contact us.
Kirsten Ellis is a human resources consultant for Employers Council.