4 benefits trends that are shifting in 2025
In 2025, HR and reward leaders face a perfect storm of rising costs, shifting employee expectations and global complexities.
More than ever, benefits are a critical lever for organisational success. But where can companies start?
Informed by the data from Ben’s Global State of Benefits Report 2025, here are the strategies that can help you navigate these challenges and build programs that deliver real impact.
The shift towards foundational benefits
According to the report, in 2024, organisations reallocated their budgets to prioritise foundational benefits such as medical and life insurance.
This shift was largely driven by soaring global healthcare costs.
Meanwhile, spend on wellbeing benefits has dropped by 16 percentage points since 2022, signalling a pivot away from perks to essentials. But this approach is not without risks.
As Carl Chapman, VP of Benefit Design & Partnerships at Ben, said: “Focusing solely on reactive interventions without addressing preventative measures is a short-sighted approach that risks perpetuating the cycle of rising costs and declining health outcomes.”
To avoid this, companies will want to hold off on completely cutting wellbeing spend and instead pair foundational benefits with preventative wellness initiatives.
Low-cost strategies such as workplace wellness programmes, ergonomic assessments and access to digital wellbeing tools can reduce long-term healthcare expenses while enhancing employee satisfaction.
Addressing low employee engagement
Despite 63% of companies identifying employee engagement as their top priority in 2024, only 9% offered full flexibility in their benefits packages.
The lack of choice and communication - with 37% of organisations only engaging employees about benefits annually - has led to low appreciation and usage of benefits.
Disjointed platforms further exacerbate this issue, as 70% of global companies lack a unified solution for benefits management.
Employees struggle to navigate fragmented offerings, reducing the perceived value of their benefits.
Companies can enhance engagement by implementing flexible benefits and improving communication.
Flexible allowance pots, for instance, empower employees to allocate funds toward benefits that matter most to them.
Regular touchpoints - monthly updates, webinars, or interactive Q&A sessions - can boost understanding and appreciation.
Tackling global benefits complexity
As global workforces expand, managing benefits across borders has become increasingly challenging.
Diverse regulations, cultural expectations and varying market standards create inconsistencies and inefficiencies.
Consequently, 23% of companies delegate full benefits autonomy to regional offices, leading to fragmented strategies that frustrate employees and HR teams alike.
Unified platforms are emerging as a solution, allowing organisations to standardise benefits while accommodating local nuances.
Companies may want to invest in centralized benefits platforms that streamline global operations and deliver consistent employee experiences.
Ensure your strategy balances global consistency with regional flexibility to address diverse workforce needs effectively.
ESG: The missed opportunity
Despite dominating much of the conversation in previous years, environmental, social, and governance (ESG) considerations remain underrepresented in benefits strategies, with only 24% of companies prioritising environmentally conscious offerings.
While initiatives such as electric vehicle schemes and tree-planting programs are gaining traction, the broader social aspects of ESG - such as inclusivity and equity - are often overlooked.
But the winds are due to change.
Generation Z, which will comprise 27% of the global workforce by 2025, values sustainability and inclusivity.
Organisations that fail to align their benefits with these principles risk losing talent to competitors who demonstrate stronger commitments.
For employers who want to stay ahead, flexible bank holidays, DEI-focused initiatives, and sustainable benefits can enhance your employer brand and meet the expectations of a values-driven workforce.
Final thoughts
The data is clear: Reward leaders will need to adopt proactive, data-driven approaches to stay ahead of the benefits curve.
By prioritising flexibility, leveraging innovative tech, and embedding ESG principles, organisations can deliver benefits that resonate with today’s diverse workforce.
The path forward demands innovation, but the payoff - a healthier, more engaged, and loyal workforce - is well worth the effort.
Supplied by REBA Associate Member, Ben
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