In the wake of the COVID-19 pandemic, business owners across the country swiftly addressed the negative impacts their employees faced, such as health concerns, increased stress and anxiety, social isolation, burnout, and work-life balance challenges. This proactive approach has led to a significant shift in the employee benefits space with a growing emphasis on overall well-being.
Mental health was a major push after COVID; now, it’s the norm. Workers expect mental health to be covered in an employee benefits package and included as part of medical benefits and telemedicine. This shift reflects the increasing awareness and demand for benefits that support physical, mental and financial wellness.
As we continue to navigate 2025, employees will likely continue prioritizing benefits that support their well-being, flexibility and personal growth. According to Robert Half’s “Benefits and Perks: 2025 Salary Guide,” offering a range of preferred benefits beyond salary can significantly enhance recruitment and retention efforts.
The guide reveals that the most commonly offered benefits by employers include health insurance (99 percent), paid time off (96 percent), retirement savings plans (95 percent), and life insurance (94 percent). Additionally, popular perks include remote work options (92 percent), flexible schedules (91 percent), remote work business allowances (83 percent), wellness perks (81 percent), employee discounts (80 percent), and PTO for volunteering (78 percent).
The perception of ancillary benefits has also evolved. Once considered secondary to medical insurance, these benefits are now seen as crucial to an overall strategy for well-being. A survey by Buck, a Gallagher Company, found that 86 percent of employers view ancillary benefits as essential. Recently, financial wellness has gained prominence, with many employers offering benefits that educate on investing and debt management techniques. Providing resources to manage debt gives employees improved financial security and helps with stress management.
While offering a competitive employee benefits package can be a substantial investment, the long-term benefits for companies are significant. Employees and job candidates rank a comprehensive benefits package as a leading consideration when evaluating employment opportunities, second only to salary. However, due to cost constraints, providing top-tier benefits can be challenging for small or mid-sized businesses.
Looking ahead, employers are exploring strategies to manage the increasing costs of health insurance while meeting employees’ needs. Small businesses may benefit from exploring partnerships with professional employer organizations (PEOs) or other providers who can negotiate more favorable group rates with insurance carriers. Doing so offers small businesses access to a wider range of affordable and high-quality health insurance options.
Ultimately, the evolution of employee benefits underscores the importance of supporting overall well-being. By prioritizing comprehensive benefits packages, businesses can remain competitive as well as attract and retain quality employees.
