Emerging Employee Benefit Trends
As we welcome 2025, a fresh opportunity arises for companies to tackle long-standing challenges.
Issues like soaring healthcare costs and the increasing role of AI in employee training are set to dominate the landscape in the coming year.
Amid anticipated political and economic shifts from the new presidential administration, HR professionals will find themselves navigating a complicated environment.
According to Linda Keller, COO and head of employee benefits at HUB International, the path forward begins with listening closely to employees.
Keller emphasizes the necessity of truly grasping the concerns of the workforce, pointing out that decisions at many organizations are often made without meaningful input from the very staff they affect.
Even with a favorable labor market for employers lately, she warns that focusing solely on retention can lead to overlooking crucial aspects such as flexible work options, AI training, and mental health support.
Rethinking Healthcare Benefits
A report from PwC forecasts an 8% jump in medical costs for 2025, marking the starkest increase in over a decade.
This surge will impact both employers and employees, as many workers’ wages are unlikely to keep pace.
When employees find healthcare costs prohibitively high, they may delay necessary medical treatment, resulting in worse health outcomes and ultimately higher expenses.
To counter this trend, Keller and Faber advocate for a reevaluation of healthcare offerings to promote better health among employees while managing costs.
Keller suggests that employers engage directly with their employees to pinpoint specific healthcare challenges, such as daunting deductibles or co-pays.
By providing guidance to make affordable, quality care more accessible, companies can significantly improve health outcomes.
Faber adds that directing investments toward healthcare solutions that demonstrate high usage rates and effective results can enhance financial stability while fostering employee wellness.
Focusing on Workplace Mental Health
Despite ongoing dialogue surrounding employee wellness, burnout remains a pressing issue, with conventional solutions like employee assistance programs (EAPs) and wellness apps proving inadequate.
Research from the American Psychological Association shows that many young adults feel stress impeding their focus, creating a need for comprehensive mental health initiatives.
Employers must critically evaluate the effectiveness of their existing mental health offerings and adapt as needed.
Faber notes that companies increasingly recognize mental health as a fundamental aspect of overall employee wellness, necessitating a broader approach beyond traditional assistance programs.
The debate over in-office versus hybrid work continues as employees seek the flexibility they enjoyed during the pandemic while also wanting avenues for direct engagement.
Though companies are encouraging returns to the office several days a week, Keller cautions that such policies may not prove effective in the long run.
Data from ResumeBuilder shows that many employers have lost talent due to rigid return-to-office mandates, highlighting the paramount importance of flexible working arrangements in today’s competitive job market.
Moreover, several workers view these requirements as controlling rather than conducive to productivity.
Keller expresses concern that strict policies could harm employee trust and engagement.
While acknowledging the benefits of in-person collaboration, Keller stresses the importance of balancing these advantages with acknowledging the challenges that commuting and logistical hurdles present to employees.
Before implementing any return-to-office policies, employers must carefully assess all factors to ensure they are effectively supporting their workforce.
Source: Dig-in
