The labor market is in constant flux, and employers must stay up-to-date on all the latest changes and trends to offer their employees the benefits they expect. Employee benefits are consistently a top consideration for workers when thinking about staying or leaving a job.
To help you as you begin planning your 2025 employee compensation packages, there are some vital pieces of information to know. Learn more about what the focus will be for employers in the coming year.
Holding the Line on Healthcare Benefits
Healthcare costs are on the rise. Employer healthcare spending is expected to jump 8% in 2025, but the majority of employers are ready to absorb those increases and continue providing the benefits their employees expect. Some employers are even looking to expand benefits.
Despite deciding whether to maintain healthcare benefits as they stand, employers in 2025 will also be seeking ways to lower costs. This is one of the top concerns for businesses across the nation.
Placing the Focus on Mental Health
In a recent survey by Business Group on Health, as many as 79% of participating employers stated that they are focused on improving the benefits they offer for mental health. To address the rise in costs, they’re pursuing low-cost virtual counseling options as well as on-site counselors. They also want to eliminate out-of-network barriers.
Increasing Preventative Strategies
Employers are looking to zero in on preventive strategies as part of employee benefits in 2025. This is especially important when it comes to cancer prevention because of the rising costs of cancer treatments. Employers are looking to focus on cancer screening services and other prevention efforts.
Other growing healthcare concerns employers are worried about are musculoskeletal issues and cardiovascular conditions. In 2025, they seek to include preventive options for these, too, in the healthcare benefits they provide.
Growing Reproductive Health Coverage
Another focus for 2025 is increasing employee compensation when it comes to reproductive health. Thirty-five percent of employers will add benefits to cover a variety of reproductive health needs, including men’s fertility testing.
Avoiding Cuts to Obesity Medication Coverage
The rise in GLP-1 use for treating diabetes and obesity has prompted employers to avoid cutting coverage on these medications. That’s the case even after a surge in costs for these treatments. Many employers are even choosing to add this coverage to their employee benefits.
Reassessing Vendor Partnerships
In the Business Group on Health Survey, respondents stated that they’re ready to rely on the request for proposal process to get a better sense of pricing. This will allow them to end partnerships with vendors that underperform and offer the chance to secure better pricing.
Employers are looking to further reduce costs by considering transparent pharmacy benefit manager arrangements and non-traditional health plans. To help simplify the member experience, they want to integrate benefit offerings, too.
Addressing How Natural Disasters Impact Employees
In 2025, employers want to implement strategies and programs for natural disasters and extreme weather. More businesses are affected every year by adverse weather, and employers recognize the impact natural disasters have on their workforce.
By offering employee compensation that helps workers after a natural disaster, employers can help prevent serious mental health concerns. Their strategies will also include guidelines for maintaining employee safety in extreme weather conditions.
Plan for 2025 With Benefits Advisory Group
Employee benefits are vital for your workforce, but they’re also important for your business. Without the right benefit strategies in place, you can face unhappy workers who may see no reason to remain. The wrong strategies can also place significant strain on your business’s budget.
At Benefits Advisory Group, we know the challenges you face. The rising healthcare costs have joined the increasing demand for mental health coverage and obesity treatments, creating a perfect storm that all employers have to navigate.
We can help you do that. Our team has years of experience helping businesses understand the needs of their employees and find solutions that are beneficial for everyone. Contact us at Benefits Advisory Group to speak with one of our experts about your options.