9 Employee Benefits Trends to Pay Attention to in 2025

The pressure to keep employee benefits programs fresh and relevant in 2025 can feel overwhelming for employers. New trends and shifting priorities emerge each year, making it harder to stay on top of what employees really want. 

This guide explores the latest employee benefits trends in 2025 so you can remain competitive in the market.

What’s driving benefits trends this year? 

Plenty of changes in the political, economic, and working world influence this year’s trending employee benefits: 

The new political landscape 

With Donald Trump back in the White House, his administration has taken a firm stance on deregulation. One of the most significant moves so far is the signing of Executive Order 14151, which calls for the end of all federal Diversity, Equity, and Inclusion (DEI) programs, eliminating roles like Chief Diversity Officers and cutting funding for equity-related grants and contracts. While the administration argues this promotes fairness by focusing on individual merit, many fear it could roll back progress on workplace diversity and inclusion efforts.

For employers, this presents a tricky balancing act. Some companies have scaled back their DEI initiatives to stay in line with the new administration, while others, like Procter & Gamble and Kroger, are doubling down on their diversity commitments despite the political headwinds. 

The message for benefits leaders? Stay informed and be ready to adapt. The debate over DEI isn’t going away anytime soon, and how companies respond could shape employee satisfaction, retention, and brand reputation for years to come. Now more than ever, it’s essential to keep a pulse on policy changes while listening to what your employees need most from their workplace benefits.

Shifts in labor force dynamics 

Return-to-office mandates undoubtedly influence the employee landscape. As an example, companies like JPMorgan Chase have enforced strict RTO policies, with CEO Jamie Dimon using an animated town hall meeting to dismiss remote work petitions and emphasize full-time office attendance. The shift in working models may prompt employers to reconsider their benefits packages and ease the transition back to in-person work. 

At the same time, companies continue to recognize the importance of employee development. For 88% of organizations, LinkedIn’s Workplace Learning Report of 2025 finds that “providing learning opportunities” is a top retention strategy. 

Jon Hill, Chairman and CEO of The Energists, an executive search and recruiting firm, explains why:

“Employees of all ages appreciate when companies support their ongoing education through reimbursement or payment of professional development and skill certification courses, particularly in the tech field or other industries where staying current with the industry trends is crucial to do your job effectively.”

AI adoption 

Artificial intelligence will be one of the most prominent areas of professional development for employees. But the technology has also worked its way into the employee benefits scene. Companies are now using AI-driven platforms to personalize their benefits offerings so they align with their employees’ individual needs and preferences. They also deploy AI-powered chatbots to provide fast responses and virtual assistants to streamline benefits administration and handle routine, repetitive tasks. 

Benefits communication is another area where AI is supporting employees in 2025. HR Executive reports that employees who used AI-powered tools for benefits education scored an average of 92% (A-) in benefits knowledge assessments, with 44% achieving perfect scores. This is significantly higher than the average benchmark of 69% (D+), highlighting AI’s incredible role in creating a more informed and satisfied workforce. 

9 top employee benefits trends in 2025

With these forces shaping the year ahead, here are the top nine employee benefits trends to watch in 2025.

1. Flexible work arrangements

Increasingly, we hear that companies are calling their workers back to the office, believing in the power of real-time, in-person communication from a central location. But employees are still resisting the abandonment of their flexible working lives. Pew Research highlights that 46% of remote employees would quit their roles entirely if their employer forced them to return to the office. 

With this sentiment in mind, savvy employers are finding a comfortable middle ground. For example, AirBnB, which launched its Live and Work Anywhere policy in 2022, requires employees to attend the San Francisco office once a month, either for a few days or an entire workweek. AirBnB funds the cost of flights for out-of-state workers, which is still less expensive to the company than if every employee attended the office five days a week. 

2. Personalized benefits packages 

Companies must cater to multiple generations of employees from multiple corners of the world, each with varying life situations. To suggest each of your people should have identical benefits is absurd, which is where the theme of personalized benefits comes in. 

Rachel Mulvihill, Senior Director of Total Rewards and People Operations at Trupanion, says:

“We see that everybody has very different interests and needs. People are at different places in their lives and need different sets of benefits, so we really strive to create a catalog where people can self-service and pull from the budget to spend on the things that make the most sense to them.”

A lifestyle spending account (LSA) allows employees to customize their benefits to their unique needs and gives employers more flexibility to design a program that meets organizational goals. Employers pre-fund the account, and employees can spend it on various eligible expenses such as wellness, mental health, professional development, childcare, or food. 

Our benchmarking report found LSAs to be the most popular perk among Benepass customers, with 66% of companies offering them at a median of $780 in annual funds. Recent SHRM data also discovered that 38% of companies plan to add, or are considering adding, an LSA to their benefits package in 2025. That’s because LSAs empower companies to increase employee compensation, reduce point solution fatigue, and create more inclusive benefits programs. 

Download our complete benchmarking guide to dig into benchmarking data for various types of benefits from companies of all sizes and industries. 

3. Reproductive benefits 

Family planning was a central issue in the 2024 elections, with Trump making pledges to provide free IVF treatment for those wishing to start a family. 

Family formation benefits are one way employers can support anyone struggling to conceive a child naturally. Infertility impacts 1 in 6 people worldwide, contributing to a decline in overall fertility rates, decreasing 3% from 2022. 

The cost of assisted reproductive techniques, such as in vitro fertilization (IVF) or intracytoplasmic sperm injection (ICSI), can put parenthood out of reach for some employees unless their employer is willing to support women’s reproductive health. Carrot Fertility’s Global Report of 5,000 employees across the U.K., U.S., Canada, India, and Mexico reveals: 

• 60% believe that employees should have better access to fertility benefits 
• 97% want employer-led support in addressing fertility care needs in the workplace
• 65% would change jobs to work for a company that offers fertility benefits 

If fertility benefits fall outside your healthcare plan, employers may offer a dedicated Family Care and Formation plan, which employees can use to fund fertility care, adoption, paid parental leave, childcare, or family planning services. 

4. Affordable health care costs 

The Trump Administration has hinted at expanding Health Savings Accounts (HSAs), which allow employers to contribute funds for employees’ HSA contributions and use them for eligible medical expenses.

Affordable healthcare benefits remain a critical trend for employees. Beyond HSAs, other pre-tax plans like Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) are gaining traction in the workplace. FSAs allow employees to set aside pre-tax dollars to cover eligible medical, dental, and vision expenses, providing immediate savings and flexibility. While FSAs are typically funded by employees, employers can also choose to contribute.

HRAs, on the other hand, are entirely employer-funded arrangements that reimburse employees for qualified medical expenses not covered under traditional insurance plans. This includes out-of-pocket costs like copayments, deductibles, and prescriptions. Both FSAs and HRAs offer tax advantages to employees while enabling employers to attract and retain talent by providing robust health benefits. 

5. Preventive care

7 out of 10 deaths in the U.S. are caused by a chronic disease, and approximately half of the population has been diagnosed with a preventable chronic disease. These include cancer, heart disease, diabetes, and AIDS.

Regular preventive health screenings and primary care consultations have been associated with a notable increase in life expectancy, particularly among individuals aged 30 to 49. These proactive health measures detect potential health issues early and contribute to longer, healthier lives.

Employers can support this by offering wellness incentives for employees who participate in screenings, use wearable devices, or engage in other forms of preventive care. Of course, physical health and employee well-being aren’t a one-size-fits-all model, so the best benefits packages focus on flexibility, choice, and customization. 

Preventive mental health benefits are also gaining momentum, with more employers recognizing the importance of offering employees mental health support in the workplace. These mental health services can include access to counseling services, mindfulness resources, or mental health days as part of a comprehensive benefits package.

6. Financial security benefits 

In 2025, financial wellness is a top priority for employers, with 88% of employees experiencing financial stress. To address this, 34% of companies now offer student loan repayment assistance, expected to rise to 40% by 2026. Employers can provide up to $5,250 annually in tax-free loan repayments through 2025, easing the burden for millions of borrowers.

Retirement benefits are also expanding, with half of private-sector workers now participating in 401(k) plans. New contribution limits in 2025 allow employees under 50 to save up to $23,500 annually, with higher allowances for older workers, enhancing long-term financial security.

Comprehensive financial wellness programs are gaining traction, too, offering financial health support, budgeting tools, and advisor access. Employers providing these programs report 30% higher employee retention rates. Other popular benefits include access to further financial education, student loan assistance, tuition reimbursement, and legal support to deal with debt and rising costs. 

7. Mentorship programs

Mentorship programs are an affordable development strategy that requires a time commitment rather than a financial investment. Pairing new joiners or early career professionals with seasoned experts passes on institutional knowledge, opens up networking opportunities, and provides access to hands-on advice. Studies show that mentorship also bolsters your DEI initiatives by increasing minority representation in executive positions. 

Mentorship is currently one of the most common L&D practices, used by 55% of organizations surveyed for LinkedIn’s Workplace Learning Report. It’s also something you could easily introduce to your workforce as part of your professional development benefits. 

8. Learning management systems

83% of organizations use a learning management system to handle their training needs, with three out of four relying on it more during the past two years. The latest LMS platforms have incorporated generative AI into learning management systems, revolutionizing how training content is created, customized, and delivered to many employees.  

The new technology can automate and personalize the development of learning materials, such as simulations and quizzes, making them more relevant and engaging for individual learners. An LMS can also analyze large datasets to identify skills gaps in your workforce so you can create tailored learning paths as required.

9. Cross-training development opportunities 

Cross-training initiatives, such as job shadowing, project-based training, and interdepartmental collaborations, will be adopted by 45% of organizations in 2025, according to LinkedIn. Career development champions leverage these methods to bridge skill gaps, with 49% using internal data to identify skills needs and 48% creating career paths with tailored course recommendations.

Working closely with executives, 45% of organizations align skilling programs with business strategies, while 42% collaborate with HR to support workforce planning. Additionally, 40% complete skills assessments to validate employee capabilities.

Offer the latest trends in employee benefits with Benepass

With Benepass, it’s easy to offer the most enticing benefits to your employees. Whether you’re offering staples like retirement plans, health coverage, or the latest trending wellness benefits, it’s easy to administer all your voluntary benefits from our central, intuitive platform. 

Ready to learn more? Book a free, no-obligation demo of Benepass with any questions.