With 2025 right around the corner, the benefits landscape is poised for significant shifts that will redefine the way organizations support their workforce. From greater flexibility to a stronger emphasis on employee well-being, staying ahead of these trends is crucial for HR leaders to attract and retain employees in a competitive job market.
In this blog, we’ll explore the most impactful predictions shaping the benefits space and how these changes could influence recruitment, retention, and overall employee satisfaction in the months to come.
Benefits will become more flexible
In 2024, we saw that more companies adapt a more flexible approach to benefits. As workforces continue to grow more diverse in age and station in life, HR teams are recognizing that a one-size-fits-all solution does more harm than good.
Benefits are becoming the differentiator for companies to stand out in a crowded marketplace, often being the deciding factor for employees choosing a prospective company. Not only are they making the difference in attracting employees, but benefits are also impacting whether or not an employee stays with the company long-term.
More companies added non-traditional benefits to their benefits programs that represent the evolving needs of their workforce. Employers are starting to add benefits like convertible PTO, emergency savings, leave-sharing programs, and fertility benefits, allowing employees to create more custom benefits packages.
In 2025, we’ll continue to see the evolution of benefits to more flexible, portable ownership of one’s total rewards compensation that can support employees’ circumstances.
Benefits will become more holistic
How an employee shows up to work is a reflection of their financial and physical health. If an employee is suffering in either of these categories, it impacts their stress levels and therefore, their productivity.
As employees are starting to feel the effects of being financially strapped, they are looking toward their employers for benefits that support their financial wellness. These benefits include financial literacy and education, emergency savings programs, 401(k) matching, student loan repayments, financial planning and more.
Additionally, employees are putting more emphasis on work-life balance. Employers are taking note and offering more wellness-based programs to show their employees that they do care about their mental and physical well-being. Programs like lifestyle-spending accounts (LSAs) give employees the option to take care of themselves outside of the office so they can show up to work as their best selves.
That’s not all. Benefit support is also extending more to employees’ families. Non-traditional benefits such as childcare and pet insurance indicate that employers are thinking of an employers’ whole family as opposed to just the employee as an individual.
In 2025, we’ll start to see benefits encompassing the whole person and their family, where an employee’s total compensation can help employees address financial and physical health needs.
Benefits will become more portable
Benefits will also begin to become portable, marking a significant shift in how employees' access and manage their workplace perks. Unlike traditional benefits tied to a single employer, portable benefits allow employees to have the responsibility over their benefits.
This approach puts more control in the hands of employees, enabling them to direct the value of their benefits toward the areas that matter most to them and their families—whether that's healthcare, retirement savings, professional development, or other personalized needs.
Mobile solutions (like the new PTO Exchange mobile app) make it easier for employees to convert their unused PTO on the go. With portable options, you get full visibility into your PTO in real time, making it easy to contribute to your financial wellness. Make exchanges, check your PTO balance, and more—all from your device.
For employers, this trend represents both a challenge and an opportunity. While it requires a rethinking of benefits design and administration, it also opens the door to creating more attractive, flexible packages that resonate with modern workers. As technology and policy catch up to this idea, portable benefits have the potential to revolutionize how benefits are delivered, ensuring greater equity and relevance in a rapidly evolving employment landscape.
The benefits landscape is evolving at a rapid pace, driven by a workforce that values flexibility, inclusivity, and meaningful support. As these predictions unfold, one thing is clear: the benefits space will continue to innovate, transforming not only how we work but also how we thrive in the workplace.
Published on Dec 13, 2024 by Rob Whalen
