What to Know About the State of Employee Benefits in 2025

The employee benefits world is constantly changing. There are new benefits that crop up, fluctuations in health care costs (and changes in associated strategies), evolving employee needs, and new regulations and rules to consider.

But one thing remains: the importance of benefits for an employer’s ability to attract, retain, and support employees.  

National Employee Benefits Day on April 2 — created in 2004 by the International Foundation of Employee Benefit Plans — recognizes the work that trustees, administrators, benefits practitioners, and advisers do in providing quality benefits and the important role these people play in supporting employee well-being.

Explore the following must-read stories to familiarize yourself with the current state of employee benefits.

5 Benefits to Watch in 2025, According to Experts 

There’s no doubt specific employee benefits ebb and flow in popularity, depending on external and internal factors.  

While tried-and-true benefits continue to be a vital part of the mix this (and every) year, a variety of benefits are trending in 2025, according to industry experts. Those include menopause support — which can include counseling, education, and menopause or menstrual leave above what is already covered by regular sick time — and lifestyle and wellness spending accounts. Find out more about the top five benefits to watch in 2025.

With Hundreds of Benefits Now in the Mix, How Can Employers Decide What to Offer?

Two years ago, the SHRM Employee Benefits Survey, which offers a comprehensive view of the support employers offer employees, listed some 175 available benefits. 

In 2024, that number rose to 216 — a 23% increase.

“There is a huge amount of different benefits employers can provide now, and more new ideas come up all the time,” said Daniel Stunes, manager of data monetization with SHRM Data and Insights.

There are the mainstay benefits, of course — health care offerings, retirement options, and paid time off. There are also education benefits, financial benefits, volunteering benefits, and family care benefits, which have become more popular in recent years. Then, there are a growing number of niche benefits, including menopause support and grandparent leave.

With so many benefits now on the table, employers have a big decision to make: which of these dozens of perks to offer their workers. Here’s how they can best make those decisions.  

How Will I&D Changes Affect Equity-Focused Family Benefits?

Inclusion and diversity (I&D) has undergone a transformation as of late: In January, President Donald Trump issued several executive orders trying to limit or restrict diversity, equity, and inclusion initiatives, and a number of companies have recently rolled back their I&D programs.

That puts a lot of workplace I&D efforts in the spotlight. But what about equity-focused employee benefits, such as fertility coverage and adoption assistance, that employers often tout as part of their inclusion efforts?

Rather than cutting back on equity-focused benefits due to I&D being under scrutiny, experts say employers may instead double down on such benefits, both to calm employee fears and to tout I&D without explicitly saying so. Although fertility benefits and adoption assistance can be used by a myriad of workers, they are viewed as particularly important for same-sex couples, single parents, older parents, and those with health conditions who are looking for more inclusive benefits and help in building their families. Learn more about potential changes to equity-focused benefits.

Efforts to Communicate Benefits Are ‘Underwhelming’ 

Benefits communication has consistently been a hot topic — and a pain point — for many employers: They know communicating about benefits to employees is important, but research often finds that efforts fall short, resulting in employees not knowing about their offerings. 

A 2024 Aon survey of global benefits professionals, for instance, found that although most (73%) said that improving communications to employees and boosting their perception of their benefits is a top priority for them, only 38% said that ensuring benefits are highly valued by employees is a key objective for global benefits teams, and just 33% of businesses include guidelines on benefits communication in their global framework.

“Current efforts are underwhelming, uncoordinated, and ineffective,” Aon said in its report. Explore more highlights about benefits communications.

Free Yacht Charters, Travel Discounts, Breast Milk Shipping: Employers Eye Unique Benefits

For most employers, benefits such as retirement plans, health care coverage, and paid time off are a standard part of the employment contract: They’re important, sure, but they’re almost as expected as a work-issued laptop.

But a growing number of companies looking to attract and retain top talent are beginning to move beyond those table-stakes benefits. Think a travel discount program, free yacht charters, a rock-climbing wall, grandparent leave, and breast milk shipping.

Those are all part of the new world of employee benefits, which has gone from a traditional industry offering the same mix of perks to one that’s constantly evolving as companies embrace unique offerings. Innovation in this space is happening at a fast rate, industry experts say, with organizations coming up with out-of-the-box perks to woo and keep talent — and often helping employees and even reinforcing their brand along the way. Find out more about the growing focus on unique perks.

Benefits Are a Focus in Employers’ RTO Efforts

A number of employers are turning to new or enhanced benefits and perks to sweeten the deal for employees who are coming back into offices. 

Some organizations are enhancing onsite fitness options, relaxing dress codes, buying employees weekly lunches or providing other free food, offering free parking or other commuter benefits, and adding or enhancing child care benefits, explained Allison Vaillancourt, vice president at HR and benefits consulting firm Segal. 

“Highly productive employees will be seeking evidence that working onsite is more beneficial than working at home,” she said. “Commuting to the office to be in Zoom meetings all day is not likely to be perceived as useful.”

Explore how employers are turning to benefits, and how it’s working.

Employers Adding Benefits to Support Diverse Needs

As company leaders look to support employees during all phases of life and a tight labor market persists, employers are considering more niche benefits such as menopause support and grandparent leave. That’s according to the 2024 SHRM Employee Benefits Survey.

For the first time since SHRM started its annual benefits survey in 1996, it included menopause-specific support in the data, finding that 17% of employers provide related support, such as counseling and education. Significantly fewer employers, just 2%, offer menopause or menstrual leave above what is already covered by regular sick time.

Currently, 4% of employers offer grandparent leave; 12% offer gender-affirming hormone therapy; and more than one-third of the 91% percent that offer bereavement leave now offer time off for loss caused by a failed pregnancy, surrogacy, or adoption, according to SHRM’s results. Read more highlights from the SHRM Employee Benefits Survey.